Harmonic (HLIT)

Company

"Harmonic Inc. is a leading provider of digital video, broadband optical networking and IP delivery systems to cable, satellite, telecom and broadcast network operators. Harmonic's open standards-based solutions for the headend through the last mile enable customers to develop new revenue sources and a competitive advantage by offering powerful interactive video, voice and data services such as video-on-demand, high definition digital television, telephony and Internet access." (company website)

Buy

13-Feb-06. Harmonic popped up some time ago in a screen for possible turnarounds; it seemed to hit bottom in October after having been slammed last April. At the time HLIT came to my attention it had had a long run up, and I anticipated a pullback, so I put in a buy order to trigger if HLIT were to trade at or below $5.60. That condition was met in what was an apparently tumultuous session yesterday; when I checked in this morning I saw that I now owned a lot of HLIT.

• Price momentum (PPO) — picking up over past two months
• Trend (ADX) — crossed the threshhold (20) last week
• Money flow (CMF) — nicely positive
• Relative strength (RSI) — had been strengthening (until yesterday!)
• Volume — several higher than normal volume up-days in last month

Not a terribly overwhelming strong chart at the moment, but this could be an "early buy" opportunity.

Sell

30-Mar-06. Harmonic made big moves this past week, and I think some consolidation is going to take place. Hence, I decided to sell and bank the profits on this lot and the other one. Signs of a pullback are there: flattening momentum (PPO), falling buying pressure (+DI), negative money flow (CMF), weakening relative strength (RSI, StochRSI). This seems like a good time to take profits and move to the sidelines.