Computer Task Group - CTG (CTGX)

Company

CTGX 1-year chart CTGX 1-year chart

"Backed by over 40 years' experience, CTG provides IT solutions and services to help Global 2000 clients focus on their core businesses and use IT as a competitive advantage to excel in their markets. CTG combines indepth understanding of our clients' businesses with a full range of integrated services and proprietary ISO 9001:2000-certified service methodologies. Our IT professionals based in an international network of offices in North America and Europe have a proven track record of delivering high-value, industry-specific solutions." (company website)

CTGX 6-month chart
CTGX 6-month chart

Sell short

18-Aug-08. If my new strategy is correct, CTG is entering a down-cycle and the priced should fall. Testing out my theory, I sold CTG short this morning.

CTG is up more than $3 since releasing earnings in late July, a huge gain. Essentially I am betting that it will retrace a lot of that gain before moving farther upward.

  • Price momentum (PPO) — the PPO just crossed below the signal line after peaking Aug 7th

Based on technical analysis, MarketEdge calls CTGX a "buy" in a "strong upward trend," noting, however, that it is "under support which is bearish."

Previously, I had placed a great weight on MarketEdge's recommendation and might have bought on what may look like a dip. We'll see...

Buy to cover

gain Bottom line
4%

10-Sep-08. Timing is everything. Although I made a small profit on this lot of CTGX, I left money on the table by covering the short too soon (cf GRB that I covered too late). Last week when it looked that CTGX was going to break through resistance, I set two trade triggers, one to cover if it broke through, and a second to cover if I could catch an outlying trade at a low price. After it pulled back from the resistance line I neglected to cancel or edit the second trigger; it bit me in the rear this morning when it triggered while CTGX may be on the way further down.