Answer: It think the yellowing is a combination of transplant shock and over-watering. Your cypress needs to have some oxygen in the soil so the roots can breathe; daily watering can result in over-saturated soils and can eventually suffocate the roots. I'd try building a watering basin beneath the cypress (a mound of soil encircling the plant, about 12" away from the trunk). Fill the basin with water, allow to drain, then fill it a second time. Do this only once each week. Watering in this way will concentrate the moisture over the rootmass and allow it to trickle down and wet the entire root system. Check the soil moisture level before watering again by sticking your finger into the soil; if it is still moist two inches from the surface, you won't need to water for a few days; if it is dry, it's time to water deeply again.
Best wishes with your cypress!
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