Comfort Systems

FIX

Company. "Comfort Systems USA is a national heating, ventilation and cooling (HVAC) company headquartered in Houston, Texas. For the first time ever, the fragmented HVAC field, composed of as many as 35,000 different companies, offers you a single company to provide complete HVAC service, anywhere, anytime." (company website)

Buy. Comfort Systems rose steadily until it peaked in June, whereupon it gave back almost half its year-to-date gains. Since then it has recovered quite a bit and pulled back. I bought after two down-days that nearly touched up with the 200-day moving average.

One day later, it looks like that may have been premature. Today it fell again down to the 50-day moving average. So the question for tomorrow is, Will it bounce back up or break down below the 50-day average? To be continued.

Sell. I decided to sell FIX and take a loss. Shortly after I bought the stock it took a plunge through which I held on based on increasing buying pressure (green +DI line), and it recently recovered back to my purchase price in five days of solid gains (week of 25-Oct). Since that put it back over the 50-day moving average — which had leveled off — I continued to hold.

Alas, FIX took another plunge. When FIX opened below the 20-day average (dashed green line) and continued to fall, I put in my sell order. It now looks like FIX is in a definite downtrend (see sidebar). In fact, MarketEdge now has FIX as a short candidate. While I don't think I'll go that far, I don't see much promise of anything but a loss by staying long.