KCS Energy (KCS)

Company. KCS Energy is "an independent energy company engaged in the acquisition, exploration and production of natural gas and crude oil with operations in the Mid-Continent and Gulf Coast regions." (company website)

Buy. I bought KCS in April after it had apparently reversed direction and begun trending upward on nice strong volumes. Buying pressure (green +DI line) was much stronger than selling pressure (red -DI line) and the trend was strong (ADX line). And for a while it looked like KCS was building a new base right around my purchase price. Cool.

Given rising oil prices and a looming shortage of oil, a gas and oil drilling company ought to be just the right place to be at just the right time. One would think.

On May 5th, KCS reported what seemed like strong results: net income up 40%. Cool. The following Monday the price fell, for no apparent reason, back to the 50-day moving average, which was rising steadily. OK, let's see what happens.

Sell. I decided to sell KCS today when I saw that the price was falling again for the third day in a row. Overall volumes have been falling, and the trend has been weakening steadily (declining ADX line). Inasmuch as the price was just high enough to cover my trading costs, I took this opportunity to get out.

Oh well.