CalAmp

CAMP

Company. CalAmp, formerly known as California Amplifier, is a "communications technology and equipment provider that delivers a diverse range of communications access and content delivery products, services and solutions... CalAmp is a recognized leader in satellite DBS technology, WLAN 802.11 networks, software application development, embedded computing and enterprise mobility. We specialize in markets such as digital media, entertainment, public safety, retail, gaming and healthcare." (company website)

Buy. CalAmp popped up in a screen for stocks with a bullish breakout with big volume. After breaking through the $8 level last week, it tested that level again yesterday with an open at $8, but that was followed by a big volume jump to $9. Today's open puts CAMP back at the same level it was twelve months ago (see sidebar).

Money is flowing strongly into CAMP (CMF) and the trend is strong (black ADX line) with lots of buying pressure (green +DI line). Today's open puts CAMP back above the 200-day moving average, usually a very good sign.

Sell. CAMP continued to move up for a couple of days after I bought, but it has been jumping back down for the past week. It finally reached my 8% loss limit, and for once I was disciplined enough to sell.

It seems reasonable that CAMP will touch up against the 50-day average and bounce back up. If so, that will be a good time to jump back in and try to recoup.