Hudson Highland Group (HHGP)
Company
Hudson is a leading provider of permanent recruitment, contract professionals, talent management and complete outsourced solutions worldwide, with approximately 3,600 employees serving clients and candidates in more than 20 countries. (company website)
Buy
11-Dec-06. Hudson is on the way back up after a long steep slide in the first part of 2006 (see sidebar). Since reporting earnings on 31-Oct, HHGP has been consolidating around the $17 level, and the Bollinger bands have grown very narrow, signaling an impending move. I'm betting it's upward. The 50-day moving average recently crossed above the 200-day moving average, which has also started to rise.
- Price momentum (PPO) — slowing, which I would expect following such a dramatic jump
- Trend (ADX) — weakening but still very strong
- Money flow (CMF) — modest outflow presently
- Relative strength (RSI) — weakened to neutral but ticking up; stochastic RSI showing signs of leaving oversold
- Volume — since earnings, most above-normal days have been up-days
Sell
Bottom line-8%
19-Dec-06. The market opened in a sour mood this morning, and HHGP fell enough to trigger my stop-loss order. It had already fallen yesterday below the lower Bollinger band, so it didn't take much to send it over the line. HHGP had spent so much time around the $17 level that I became convinced that would be the base for the next move up. Now it looks like it may want to touch up with the 50-day moving average before moving up, if then.
Fortunately, I had only bought a half-lot of HHGP because of its price, so the damage is not as bad as it otherwise might have been.
