Cornell Companies

CRN

Company. "Cornell Companies (NYSE: CRN) is a leading private provider of corrections, treatment and educational services to government agencies. Focusing on adult and juvenile populations in both institutional and community settings, Cornell provides a full array of services in an environment of dignity and respect, emphasizing community safety and rehabilitation in support of sound public policy." (company website)

Buy. Cornell got out of the doldrums around $11.50 in mid-April, but it was only a month later that the price had risen enough to cause the 50-day moving average to turn upward again. I bought after five consecutive days of higher closes, the last one on four-times the normal volume.

Since my buy, CRN has been trading sidewise in a range between $13.50 and $14.00. This should have been building "a base" for further advances beyond $14.00

Bottom line
-2.5%

Sell. I decided to sell this morning when I saw that the price had fallen even more from Friday's close, which itself had been a big down-day. The signals for CRN have definitely been mixed, and in the face of it, I decided to take a small loss.

On the one hand, buying pressure (+DI line) has fallen steadily since my buy, with a small up-tick in selling-pressure. The 200-day moving average continues to fall. At $14, the price is 12% above the 50-day moving average, and it would not be surprising to see it come back.

On the other hand, money has been flowing into the stock (CMF) at a nice rate and up-days have been on heavier volume than down-days (by a ratio of 2.5:1).

This sale may have been premature, but with the one-year chart (see sidebar) looking as erratic as it does, I'm disinclined to take chances.