Harris Interactive (HPOL)

Company

"Harris Interactive Inc. (www.harrisinteractive.com), based in Rochester, New York, is the 13th largest and the fastest-growing market research firm in the world, most widely known for The Harris Poll® and for its pioneering leadership in the online market research industry. Long recognized by its clients for delivering insights that enable confident business decisions, the Company blends the science of innovative research with the art of strategic consulting to deliver knowledge that leads to measurable and enduring value." (company website)

Sell short

31-May-06. I lost a little money on HPOL when I mistook a short-term rally for reversal of the downtrend in place since HPOL peaked in February. It has failed twice to rise above the falling 50-day moving average, so I thought I would see if I could play HPOL's misfortune to my advantage.

• Price momentum (PPO) — slightly positive, but flat
• Trend (ADX) — weakening, and selling pressure (-DI) is above buying pressure (+DI)
• Money flow (CMF) — slightly positive, and ebbing
• Relative strength (RSI) — neutral
• Volume — low volumes, and falling

The technical analysis of MarketEdge calls HPOL a "short candidate" and puts resistance at $5.09 and support at $4.96. Going down?

Buy to cover

29-Jun-06. The tide turned for HPOL, and I got caught out. It found support at the 200-day moving average and bounced back above the 50-day average. This week NASDAQ announced that HPOL will be included in a new "NASDAQ Global Select Market" listing. I have no idea if that had an effect, but whatever the case, something happened to break HPOL out of the doldrums.

P.S. Whew! It's a good thing I covered earlier this morning, because the market went plumb crazy after the Fed announcement. With half an hour to go, HPOL is trading at $5.75, a new 52-week high!