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.
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