TransMontaigne (TMG)

Company

"TransMontaigne Inc. is a refined petroleum products marketing and distribution company based in Denver, Colorado, with operations in the United States, primarily in the Gulf Coast, Midwest and East Coast regions. The Company's principal activities consist of (i) terminal, pipeline, and tug and barge operations, (ii) distribution and marketing and (iii) supply chain management services. The Company's customers include wholesalers, distributors, marketers, and industrial and commercial end-users of refined petroleum products." (company website)

Buy

4-Feb-05. TransMontaigne is reaching new 12-month highs on respectable volumes, and there is solid price momentum (PPO). Although buying pressure (+DI) is slacking off a bit, the trend is still strong (ADX) and relative strength (RSI) is increasing gradually.

Sell

11-Feb-05. Yesterday, TMG opened a bit higher but then had a mixed up-and-down day, ending just below where it opened. That indecision was a warning sign. Hugging the upper Bollinger band for several weeks, TMG had gotten quite a big ahead of the 50-day moving average, and a pullback would not be a surprise. I put in a stop-loss order to sell if TMG traded at $7.75 or lower. It did, and my shares eventually sold.

That selling was a wise move can be seen in the deterioration in the chart: falling buying pressure (+DI line), loss of price momentum (PPO), decreasing money flow (CMF), decreasing relative strength (RSI).