DiamondCluster International (DTPI)

Company

"DiamondCluster International is a premier global management consulting firm that helps leading organizations develop and implement growth strategies, improve operations, and capitalize on technology. Focused on technology, our teams combine highly skilled consultants in strategy, technology, and operations. DiamondCluster works collaboratively with clients, to unleash the power within their own organizations to achieve sustainable business advantage. DiamondCluster is headquartered in Chicago, with offices across Europe, the Middle East, and Latin America." (company website)

Buy

26-Jan-06. DiamondCluster hit bottom last October and has been moving up since then. Shares took a big jump in early January on big volume for no apparent reason, followed by consolidation and some profit taking that put DTPI into an oversold condition (StochRSI). I think it is now ready continue rising.

• Price momentum (PPO) — picking up for past two months
• Trend (ADX) — two-month period of strengthening, and buying pressure (+DI) has just ticked up again
• Money flow (CMF) — positive
• Relative strength (RSI) — has gone from weak to strong over past two months
• Volume — big volume on latest price jump

Sell

4-Apr-06. For quite some time, I have had a sell order for the first two (of four!) lots of DTPI set to trigger if DTPI traded at or above $11, since that would bring me a profit of at least $1 per share on those two lots. The order triggered this morning when DTPI surged.

I am happy to have sold for two reasons: first, the profits in the bank, and second, it reduces the weighting of DTPI in my portfolio (I have rarely held more than two lots of a stock at any one time, and I had four of DTPI).