SpaceX's second wave of lock-up expirations is here; how should investors position themselves in spa
Sudden bearish news for optical transceivers! AAOI presents a buy-the-dip opportunity in the gap zone; LITE and ASTS are positioned for accumulation at low levels.
1. $Applied Optoelectronics (AAOI.US)$ Regarding the optical transceiver sector today,the biggest bearish catalyst came from AAOI.AAOI announced plans for a $600 million equity offering. Impacted by this news, its pre-market price dropped over 10%, hovering around $109. However,here comes the interesting part:the $109 level coincides preciselywith the gap left by AI in early August., soFor those who completely missed out on AAOI previously,if you remain bullish on optical transceivers and can tolerate AI's high volatility, I believeyou should closely monitor the $110–$103 range after the market opens today.If AAOI enters this zone, consider initiating your first position. However, at this level,This point must be emphasized.AAOI is one of the core holdings with the highest elasticity in the optical transceiver sector,Daily fluctuations of around 10% are quite normal, making it suitable only for aggressive,investors who can tolerate high volatility. If you are uncomfortable with daily swings of approximately 10%,do not assume it is cheap simply because it has dropped significantly in pre-market trading., ifIf you wish to participate in the optical transceiver theme but prefer not to trade highly volatile stocks like AAOI,I suggest reconsidering LITE.
2. $Lumentum (LITE.US)$ LITE experienced a significant intraday spike and pullback last Friday. Although the closing decline appeared to be only 1.5%, the actual pullback from the intraday high of $920 was nearly 5%.Compounded by the impact of Middle East tensions on pre-market trading today, the share price has returned to around $830., ifYou were already at $830 last weekThose who entered positions early are now seeing LITE's price return to near their average cost basis.As long as you remain bullish on optical transceivers, I believe there is no need for excessive trading activity.From the perspective of core stocks in the optical transceiver sector, LITE's current technical structure remains relatively strong.$780 continues to be the most critical sentiment support level since August.As long as this level is not effectively broken, I do not anticipate any sharp declines for the time being.The $800–$830 range remains a favorable zone for initiating the first tranche of position building.The initial upside target can still be set at $950.
2. $Lumentum (LITE.US)$ LITE experienced a significant intraday spike and pullback last Friday. Although the closing decline appeared to be only 1.5%, the actual pullback from the intraday high of $920 was nearly 5%.Compounded by the impact of Middle East tensions on pre-market trading today, the share price has returned to around $830., ifYou were already at $830 last weekThose who entered positions early are now seeing LITE's price return to near their average cost basis.As long as you remain bullish on optical transceivers, I believe there is no need for excessive trading activity.From the perspective of core stocks in the optical transceiver sector, LITE's current technical structure remains relatively strong.$780 continues to be the most critical sentiment support level since August.As long as this level is not effectively broken, I do not anticipate any sharp declines for the time being.The $800–$830 range remains a favorable zone for initiating the first tranche of position building.The initial upside target can still be set at $950.
Having discussed the high-beta technology theme, I will now highlight a relative value opportunity in a lower-positioned sector:ASTS in the commercial aerospace sector.
3. $AST SpaceMobile (ASTS.US)$ This stock has recently seenA technical phenomenon worth paying close attention to:After declining intraday for four consecutive trading sessions, the stock ultimately managed to form a distinct long lower shadow each time. Thisindicates that, from a price perspective, there is already some buying support emerging at lower levels.From an industry standpoint,commercial spaceflight remains, in my view, a long-term sector with very high certainty over the next 2–3 years.Based on the current share price, ASTS is only about 20% away from its absolute low for the year. Furthermore, after two and a half months of correction,ASTS has not yet experienced a normal rebound rally.As we approach the fourth quarter, I believe commercial spaceflight may see renewed catalysts and capital inflows.If you are currently wary of high-beta tech stocks such as memory chips and optical modules, and are unwilling to chase highs amid uncertainty in the Middle East,then this stage could serve as a strategic entry point at lower levels. Focus on the upside targets; I suggest being bold and initially looking at the $80–$90 range.
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Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.Read more
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