724 Solutions (SVNX)

Company

"724 Solutions delivers reliable, scalable technology and solutions that allow mobile network operators to rapidly deploy flexible and open, next-generation IP-based network and data services." (company website)

Buy

14-Dec-04. 724 Solutions jumped out beyond the previous peak last week on nice volumes. It gave back some of the gains in three days of losses that put the stock close to being over-sold. On Monday, however, SVNX opened lower but then rose for the rest of the session, a bullish sign. I decided to buy today if it traded above Monday's close.

The trend is still strong (black ADX line) and selling pressure (red -DI line) seems minimal. Cash flow (CMF) is still strong, and relative strength (RSI) is high.

Sell

3-Jan-04. I wasn't expecting to sell any of my stocks today, given the typical pattern of prices continuing to rise until about Jan 6, but the market this morning scared the spit out of me. When I looked in at the beginning of the session, everything was up. An hour later, almost everything was down. Accordingly, I decided to sell SVNX to lock in the nice profits.

To be sure, there are a lot of indications that SVNX may go still higher, at least in the short term (see the upticks in all the indicators). But I don't want to be cautious and not watch profits slip away (as they have with so many other stocks today).