Instinet Group

INGP

Company. "Instinet Group Incorporated provides sophisticated electronic trading solutions to enable buyers and sellers worldwide to trade securities directly and anonymously with each other, interact with global markets, have the opportunity to gain price improvement for their trades and lower their overall trading costs." (company website)

Buy. Instinet Group bottomed in August and is now back where it was 12 months ago (see sidebar). INGP broke above the $5.25 level this week after two days of heavy trading last week.

Sell. The day after I bought INGP, it jumped way up and a huge number of shares changed hands. A rumor was spreading that INGP was about to be acquired. Instinet Group disavowed the rumor, and since then INGP has traded in a narrow band between $6 and $6.25. Given the weakening trend (falling black ADX line) and the sharp fall-off in buying pressure (declining green +DI line), it seemed prudent to protect myself with a stop-loss order. At the very end of today's session, the price reached my activation point, and the shares sold.