SIRVA, Inc (SIR)

Company

"SIRVA, Inc. is a leader in providing relocation solutions to a well-established and diverse customer base around the world. The company has redefined the relocation industry by offering innovative ways for customers to achieve their individual business goals, while providing global end-to-end relocation services, including program development and management, home purchase and home sale services, household goods moving, and mortgage services." (company website)

Buy

30-Jun-05. SIRVA dived in February and has been trying to climb back out (see sidebar). In May in broke past the $8 level, reaching a high of nearly $10 before pulling back to $8 again. I jumped in today after SIR crossed back above the 50-day moving average. Late in the session drifted to close a bit lower than my buy price.

• Price momentum (PPO) — was picking up until the pullback
• Trend (ADX) — was strengthening until the pullback
• Money flow (CMF) — still positive although falling off during the pullback
• Relative strength (RSI) — was strong until the pullback

I made my buy decision seeing that SIR was recovering from being over-sold (StochRSI) and signs were ticked up at the end of yesterday. Now it's looking like I moved prematurely.

Sell

18-Jul-05. I sold SIR today for two reasons: first, I needed to generate some cash, and second, there are signs of a possible trend reversal.

• Average daily volume has been declining steadily
• Cash flow, while still positive, has been slowing
• Relative strength has ticked down again without ever getting into the upper band of the chart, and
• SIR has become overbought (StochRSI)

In addition to all those things, SIR is due to report earnings today, and with the market in a sour mood already today, the slightest disappointment could be punished severely.