Midway Games (MWY)

Company

"Midway Games Inc. is a leading developer, publisher, and marketer of interactive entertainment software. Midway videogames are available for play on all major videogame platforms including the Playstation®2 computer entertainment system, Xbox® video game system from Microsoft, Nintendo GameCube™, and Game Boy® Advance." (company website)

Buy

17-Jul-06. I've had my eye on Midway for a long time, but it was never the "right" time to buy. In June MWY reached a new 52-week low, then reversed (see sidebar). A couple of weeks ago, after MWY had taken a pause and was climbing rapidly again, I put in a buy order for what looked to me like a reasonable price, given the chart. Today that order finally executed at what turned out to be the low price of the day.

• Price momentum (PPO) — leveling off after a steep rise
• Trend (ADX) — still very strong
• Money flow (CMF) — positive
• Relative strength (RSI) — neutral, but has strengthened over past month
• Volume — average daily volume growing

Sell

27-Jul-06. I closed my position in MWY to lock in gains of $1 per share. The chart still looks pretty strong, and MWY is tantalizingly close to breaking past the $10 level again, but a dollar is a dollar, and not to be sniffed at. I may want to buy back in again after the company reports earnings next week, but in the meantime I think I'll just hang onto my profit.