Service Corporation International (SCI)

Company

"Service Corporation International is North America's most trusted provider of end-of-life arrangements and services. Based in Houston, Texas, we operate more than 1,500 funeral homes and 400 cemeteries." (company website)

sci(4-1)
SCI 4-month chart
sci(4-1)_1yr
SCI 1-year chart

Buy

3 December 2009. There's no more sure thing than death. In recent parlance, this would be a "death stock."

A big earnings surprise gave SCI a big boost that has consolidated just below $7.75 (technical resistance). The Bollinger bands are narrowing, so a breakout is likely (so is a breakdown for that matter). In any case, I'm looking for a price movement, and I'm betting it will be upwards.

  • Percentage price oscillator (PPO) — touched up with the signal line
  • Volume — most high-volume days since earnings have been up-days

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

Sell

gain Bottom line
0%

9 December 2009. It doesn't look like the breakout I expected is going to materialize. The PPO line has started to converge back onto the signal line. Rather than wait it out, I bailed for a break-even after trading expenses.