Marchex (MCHX)

Company

MCHX 1-year chart MCHX 1-year chart

"Marchex is a technology driven search and media company focused on vertical and local online traffic. Specifically, the company is focused on search marketing, local search, and direct navigation. Marchex's platform of integrated performance-based advertising and search marketing services enables merchants to efficiently market and sell their products and services across multiple online distribution channels, including search engines, product shopping engines, directories and selected Web sites." (company website)

MCHX 6-month chart
MCHX 6-month chart

Buy

Marchex bottomed in January 2007 and has been trending up since. There was a major correction in April-May. For the past two months, the averages have been climbing, and I believe it is at or near the bottom of the current down-cycle. It is also not far from its 52-week high.

  • Price momentum (PPO) — positive, although slacked off in down-cycle
  • Relative strength (RSI) — trending up since last earnings, but currently at neutral
  • Trend (ADX) — a bit weak, and buying pressure (+DI) and selling pressure (-DI) about even
  • Volume — fairly light and declining, but still near 100K per day

Based on technical analysis, MarketEdge calls MCHX a "strong buy" in a "weak upward trend," noting that it is "oversold" and at a "good entry point."

Sell

gain Bottom line
-38%

Well, this didn't work. After hanging on far too long, I finally decided to close this positiion and take the loss. The Santa Claus rally did not carry over into the new year as it usually does, and there are very dark clouds on the economic horizon.