Ariba (ARBA)

Company

"Ariba, Inc. is the leading provider of Spend Management solutions to help companies realize rapid and sustainable bottom line results. Successful companies around the world in every industry use Ariba Spend Management software and services." (company website)

Buy

2-Dec-05. I added to my position today with another lot. Two lots actually. At the open I bought another lot, forgetting that I had another buy order set to trigger if ARBA closed at or over $8.75. So I ended up with two lots. Argh!

My theory was that the Bollinger bands have narrowed and quite a lot of money flowed into the stock yesterday as it pushed against the bands. This may not have been the best-timed purchase, however.

• Price momentum (PPO) — slowing since I bought the previous lot
• Trend (ADX) — weakening
• Money flow (CMF) — strongly positive
• Relative strength (RSI) — still high
• Volume — high volume days have been up-days

Sell

25-Jan-06. Ariba resoundingly surpassed expectations when it reported earnings on Monday, and the stock took off yesterday. I decided to take my profits today. ARBA opened a bit lower then vascillated up and down a bit on smaller and smaller volumes as the session wore on. Even if ARBA climbs higher, I think a pause and consolidation is likely. Thus, my sales represent yet another instance of "bird in the hand" reasoning.