Marchex (MCHX)

Company

MCHX 1-year chart MCHX 1-year chart

"Marchex is a local online advertising company and leading publisher of local content. Marchex's advertising solutions enable our tens of thousands of local and national advertisers to efficiently reach consumers searching for products and services through our exclusive mix of leading search and shopping engines, search- and call-based marketing services, top publisher Web sites and our own local content network. Marchex's local content network, one of the largest online, helps consumers make better, more informed local decisions." (company website)

MCHX 6-month chart
MCHX 6-month chart

Buy

I bought an earlier lot of MCHX in July, just as it was beginning a downtrend that turned into a disaster after the company turned in a negative earnings surprise (missing by 1¢). It would seem that it is on the upswing again, so I am going to try to mitigate the loss.

  • Price momentum (PPO) — now positive after plunging to strong negative
  • Relative strength (RSI) — back to neutral after a modest pullback
  • Trend (ADX) — still above the threshhold, and buying pressure (+DI) is rising again after falling to equal selling pressure (-DI)
  • Volume — not a strong picture, but back about where it was six months ago

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

Sell

gain Bottom line
-11%

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.