Perficient Inc (PRFT)

Company

"Perficient is a leading information technology consulting firm serving Global 2000 and enterprise customers throughout North America. Perficient's professionals serve clients from a network of 19 offices in North America and three offshore locations, in Eastern Europe, India and China. Perficient helps clients use Internet-based technologies to improve productivity and competitiveness, strengthen relationships with customers, suppliers and partners and reduce information technology costs." (company website)

prft(2-1)
PRFT 6-month chart
prft(2-1)_1yr
PRFT 1-year chart

Buy

Perficient has climbed steadily since early March, peaking just before on-target earnings. After retreating to the 50-day moving average, it is climbing again. Just after earnings, the 50-day moving average crossed above the 200-day moving average, a bullish sign.

  • Percentage price oscillator (PPO) — converging rapidly on the signal line, about to cross above.
  • Volume — stable over last 2+ months

Based on technical analysis, MarketEdge calls PRFT a "buy" in a "weak upward trend."

Sell

gain Bottom line
-9%

I was stopped out of my position in early trading (in the third minute) by my new trading rules. Whenever a stock falls 3% or more from the previous day's close, a trailing-stop order is automatically placed, set to activate at another 3% loss. My thinking was that if a stock suddenly drops 6% in a single day, it's not a good sign and I should get out.

At the time I took this position, the PPO was converging on the signal line, and I tried to anticipate it crossing. That didn't materialize.

Yesterday's sell-off was fairly high volume, and today's opening plunge took PRFT below the upward channel it had been trading in. True enough, this could be a temporary blip, but then again it could be a harbinger of worse to come. That, of course, is why you're always advised to take the emotion out of trading.