Ionatron (IOTN)

Company

"Ionatron, Inc. is a solution provider that develops and markets Laser Guided Energy (LGE(TM)) and related products to defense and security customers for unique applications worldwide. Ionatron has significant expertise in the application of high-power lasers, optics and energy management technologies. Headquartered in Tucson, Arizona, Ionatron is focused on solving technology problems directly for its government and security-conscious customers." (company website)

IOTN 3-month stock chart

Buy

After trending down for most of 2006, Ionatron bottomed in mid-November. It has been inching up ever since (see sidebar).

  • Price momentum (PPO) — dramatic improvement
  • Trend (ADX) — extremely strong
  • Money flow (CMF) — flowing in
  • Relative strength (RSI) — very strong
  • Volume — much higher volume than normal for price moves

Based on technical analysis, MarketEdge calls IOTN a "buy" in a "strong upward trend."

I set my stop just below the low after the price jump to $5.

Sell

loss Bottom line
-10%

What a difference a day makes! There was a massive sell-off of IOTN today, with five-times normal shares changing hands. At one point, IOTN was down nearly 14% from its opening price. Although it eventually recovered somewhat, my stop-loss order was triggered.