SMART Modular Technologies (SMOD)

Company

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SMOD 4-month chart

SMOD 1-year chart

Sell short

11 March 2010. Sell short 500 at $6.20.

SMOD got a big boost from earnings in December, but has not been able to hold the gain, trending down since late January and has now dropped well below the 50-day moving average, which, itself, has started to decline again. It is now trading just at its support price ($6.18).

  • Percentage price oscillator (PPO) — below the signal line, which is dropping
  • Volume — falling off

Based on technical analysis, MarketEdge calls SMOD an "avoid" in a "weak downward trend."

Buy to cover

gain Bottom line
-7%

17 March 2010. Buy to cover 500 at $6.60.

Instead of falling out of the triangle, SMOD bounced back up and is now threatening to break out to the upside. My stop-loss order was triggered yesterday, but executed only partially. I had to cover the remaining shares today at a higher price.