Micromuse (MUSE)

Company

"Micromuse delivers industry-leading business and service assurance solutions to organizations worldwide. During the 14 years since our company's inception, our flagship Netcool brand has become synonymous with scalable, realtime, end-to-end management of complex IT and telecommunications infrastructures. Our comprehensive range of Netcool solutions enable service providers, equipment providers, corporate enterprises, and government agencies to extract maximum value from their mission-critical applications, systems, and networks." (company website)

Buy

18-May-05. MUSE pulled back a lot since peaking in December, but has begun to move back up again (see sidebar). It has now passed the December peak and still has headroom below the year-ago price level. The move past $5.50 was on heavier than normal volume. The 50-day average is about to cross above the 200-day moving average.

• Price momentum (PPO) — rising steadily for two months
• Trend (ADX) — strengthening over the past month, with buying pressure (+DI) widening the spread over selling pressure (-DI)
• Money flow (CMF) — from negative to strongly positive
• Relative strength (RSI) — gradual improvement over the past two months

Sell

6-Jun-05. For almost three weeks it looked like MUSE was consolidating right around my purchase price, but Friday it went south and continued that direction this morning. The trend (ADX) and relative strength (RSI) are weakening. Breaking $6 brings it back to the December peak price, so I decided to bail.