Hayes Lemmerz (HAYZ)

Company

"Hayes Lemmerz International, Inc. is a leading global supplier of automotive and commercial highway wheels, brakes, powertrain, suspension, structural and other lightweight components. The Company has 42 facilities and has approximately 11,000 employees worldwide." (company website)

Buy

23-Jun-05. Hayes-Lemmerz is reversing a steady decline for most of the past twelve months.

• Price momentum (PPO) — greatly increased over past two months
• Trend (ADX) — strengthening and buying pressure (+DI) has been reasonably strong although fluctuating
• Money flow (CMF) — was very strong, but looking awfully weak this week
• Relative strength (RSI) — positive, but nothing spectacular

From a technical standpoint, HAYZ doesn't look too bad. It's a little worrisome, from a fundamentals standpoint, given the weakness in the US auto industry, but HAYZ is a global supplier.

Sell

12-Sep-05. There's one thing I cannot be accused of, and that's bailing out on my stocks too soon. I held onto HAYZ believing that it was just undergoing a short-term "correction." The proper thing would have been to sell in mid-August when the 50-day moving average turned down. But hope springs eternal. Last Thursday and Friday, however, completely snuffed out hope of recovery, and I put in an order to sell this morning at the first hint of further decline.

I am apparently not the only one convinced by last week's trading: today's volume is already ten times normal, and the session isn't even half over.