PMC-Sierra (PMCS)

Company

"PMC-Sierra(TM) is a leading provider of broadband communications and storage semiconductors for metro, access, fiber to the home, wireless infrastructure, storage, laser printers and customer premises equipment. PMC-Sierra offers worldwide technical and sales support, including a network of offices throughout North America, Europe, Israel and Asia. The company is publicly traded on the NASDAQ Stock Market under the PMCS symbol and is included in the S&P 500 Index." (company website)

PMCS 3-month stock chart

Sell short

I lost money on PMCS last year trying to catch a potential uptrend. It now looks like up has become down, so I'll try again, this time going short.

  • Price momentum (PPO) — ticking up in last week but generally slowing
  • Trend (ADX) — weakening
  • Money flow (CMF) — outflow is slowing somewhat
  • Relative strength (RSI) — neutral and generally weakening
  • Volume — falling drastically

Based on technical analysis, MarketEdge calls PMCS a "short candidate" in a "weak down trend" that is at a "good entry point" being overbought.

Sell

gain Bottom line
5%

When I looked in on my portfolio this morning before heading off to the golf course, PMCS was having a bit of a rally. Out of an abundance of caution (and to compensate a really irritating and unnessary loss on STEC), I lowered the trigger price of my stop-loss order (really a save-profit order), which was then triggered. Although PMCS did fall a bit later, it still had a little surge for the day with nice volume.