Citadel Security Software Inc (CDSS)

Company.Citadel "develops and markets computer security and privacy software for one of the fastest growing segments today -- information technology (IT) security. Computer software products from Citadel include security and management solutions for networks and personal workstations designed to secure and manage personal computers (PCs) and local area networks (LANs)." (company website)

Buy. I bought Citadel in early March after a week of solid rises that brought it through the latest peak around $5.50 and over $6. All this happened on good volume. The upward trend was strong (rising black ADX line), and buying pressure (green +DI line) had increased while selling pressure had decreased (red -DI line).

Combine those strong technical indications with Citadel's focus on helping recovery networks of computers that have been savaged by attacks, and Citadel should have been a winner.

I guess someone forgot to tell the market.

Sell. Right after I bought CDSS, it suffered a couple of down-days that were not all that troubling to me. After all, it had come up quite a ways and a slight pull-back was not unreasonable.

But, volume of shares traded fell off to practically nothing, and CDSS price continued to decline. When it fell below $5.50 I got nervous, since this also took the price below the 50-day moving average. But then CDSS dropped below $5 yesterday and continued down today, all in the context of a general rally in the market. It even broke through the lower Bollinger band (green lines), never a good sign.

I decided I had already lost too much on CDSS and it was time to pull the plug.