Network Engines (NENG)

Company. Network Engines "develops, manufactures and distributes server appliance products for storage and security software vendors and for network equipment providers worldwide." (company website)

Buy. I had made a reasonable profit on Network Engines last year, and it looked like I might be able to make some more money on the stock. The 50-day moving average, after falling precipitously for two months, had flattened out. Money flow (CMF), although negative, had also stabilized.

I should have paid more attention to the series of "lower-lows" ($5.55, $5.05, $4.75) but I convinced myself — for no apparent good reason — that NENG had bottomed out and would miraculously begin to trend upward again. Oops.

Sell. It became clear yesterday that the trend was now downward. NENG closed at another new low, and today simply confirmed it. I sold to cut my losses. The saving grace is that I had only bought half as many shares as normal.

Ouch! Definitely prudent and in compliance with my selling rules, but ouch! I hope I don't have to learn all over again to avoid wishful thinking.