SimpleTech

STEC

Company. "SimpleTech, Inc. is a global engineering and manufacturing company that offers memory and storage products for a wide range of industrial and consumer applications, including IP networking, consumer electronics, personal computing, and telecommunications." (company website)

Buy. SimpleTech turned up in a screen for bullish breakouts with big volume. It bottomed at the end of July, then broke out above $4 with a vengeance at the beginning of October. Now, a month later, it has broken $5 with another big volume day last Thursday. Despite some selling on Friday, the price of STEC did not fall much.

The 50-day moving average is about to cross over the 200-day moving average, an event that usually stimulates a lot of additional buying.

Sell. I decided to cut Simple Technologies loose today when it opened down for the fourth consecutive day. Although it is still above the 50-day moving average, the trend continues to weaken (falling black ADX line), and money flow into the stock is slowing (CMF).

When I bought STEC, I had hoped that it had successfully passed the $5 level and was on the way back up. It now looks more likely that it will trade sideways for a while or may even retreat again. Either way, I think I can find better use for my money.