Ciena (CIEN) has moved further below its 50-day moving average since it was first reported on as a short-sale set-up and entry at the 50-dma over a week ago. The stock is now breaking below the 20-dema, which can be treated as a secondary entry using the line as a covering guide for that part of the position or a trailing stop for the entire position. Watch the general market closely, as where it goes will likely figure heavily into where CIEN goes from here.
Lumentum (LITE) is finally breaking below its 20 -dema in more decisive fashion after hanging above the line for several days. This can be used as an entry trigger but it was possible to get short the stock just above the 20-dema last week since it never got more than 2% above the line. That is the trickier entry that requires some finesse, but LITE was still quite shortable this morning as it was breaking below the 20-dema, which now serves as a covering guide, with an addition 1-3% of upside porosity added as desired. As with CIEN, watch the general market context carefully, since short-selling obviously tends to work better when the general market comes in.
Short-Sale Set Up - Follow-Up - Ciena (CIEN), Lumentum (LITE)
|Published:||1 Jun 2021 10:23 ET|
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2021 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.