Adobe loses its CFO and gets downgraded — bet on further downside
Thesis
Losing a CEO is tough for a company, but losing the CFO right after creates a leadership vacuum at the top. When multiple Wall Street analysts downgrade a stock simultaneously, it often triggers automated selling from large funds. This combination of executive exits and institutional downgrades usually pushes a stock's price lower over the following weeks as confidence erodes, making this a solid bet against the company in the short term.
Strategy approach
Build a rule-based strategy that goes short on ADBE on the 4-hour (H4) timeframe. Entry condition: enter short when the price crosses below the 20-day simple moving average (SMA) and the MACD line crosses below the signal line. Exit condition: cover the short if the price closes above the 10-day SMA, or set a 4% stop loss. Max hold period: 10 days.