Pearson

PSO

Company. "Pearson is an international media company with market-leading businesses in education, business information and consumer publishing." Their brands include Pearson Education, Financial Times, and Penguin. (company website)

PSO stock chart
Bottom line

profit +3%


Buy. I bought Pearson in April after the stock had pulled back from a new high and then recovered back up to the pullback point. Money flow (CMF) was positive, and there was more buying pressure (green +DI line) than selling pressure (red -DI line). The 50-day moving average had started to slope upward again after a decline.

For a time, PSO looked like a good buy: it would move up, correct, then move back up again, but always generally upward. Tthen in early May it set a new high and promptly fell way back in five days of selling. Yikes!

Sell. I decided to sell today after watching the last three days of selling and lower closing prices. I see several things in the chart that have made me nervous about PSO.

  • Average daily volume has been falling for the past three months
  • There are a lot of gaps — up and down — in the chart
  • Although money flow into the stock was strong (CMF) during May, it has begun weakening
  • PSO recently made a big jump and closed above the upper Bollinger band (green wavy lines) but immediately fell back

All in all, it just seemed prudent to take the meager profits that I have and close my position.