Trade Alert: Quick trade in $FSLR

Well, finally $FSLR hit support @ 130 and I was tempted to buy some even on margin. Notice that with my previous trades in $WFR, I went overboard thinking that on OPEX I will get called out on many position and will be underinvested.

So how do I counter that? by investing on margin…. well, I am sure this is not the right move but anyways FSLR was right at the support level I was watching it to hit.

So I bot 10 FSLR on 8/19/2009 for 129.96 and set a tight stop @ 50 dollar loss max. Remember this was margin so I did not want this position to go against me for a huge loss. Setting a tight stop and obeing it was key here.

Nevertless, I held this overnight and luckily for me there were too many people watching the same line, this is where technical analysis intrigues me as its almost that it is self fulfilling as many people watch the same support and resistance levels, they tend to do the same exact things at those levels.

$FSLR bounced to 135, I set a trailing stop to $1, guess what in a few seconds, it hit and I was out 10 FSLR @ 133.03.

Note to myself: setting $1 trailing stops on volatile stocks do not work as they move a few dollars here and there and I was sure FSLR will go up n down 4-5 dollars in a day.

So, I was out of this position next day for a small quick profit. Also note that I need to pay interest on the margin amount that eats into my profit so actual profit is less than what is seen in the activity tab.

Here is the trade for the record

Profit: $20.76 after all commissions but before any margin interest.

Looking back, $FSLR sold off huge

on Friday and broke TL support and is now sitting at about 125 a share, boy was I smart in setting those traling stops or what

Watchlist: Aug 08 2009

Let’s do some technical analysis and see what’s hitting support lines or is oversold. I dont see any stocks making this list this weekend as the market is on a run and everything is hitting euphoric levels

Nevertheless, here are a few stocks that make my watchlist

$AMZN: Amazon

See 60 day 60 min chart below, still waiting for it to tag that trenline around $82, I will put this on my radar if it comes anywhere in that green box
Looks like its finding support off the 200DMA, this might break lower if the market rolls over, I would wait.

$FSLR: First Solar

Still on my radar, I will not buy until the pattern completes. It it comes to me @ 130 in the green box then I am very very interested, Currently its tagging 200DMA and might bounce off there.
I am waiting patiently for it to come to me.

$JRCC: James River Coal Corp.

One name that has come to my attention is James River Coal Corp, I have played this in the past at much lower prices and this rallied and sold off dramatically.
It kept popping on my screen as a loser for 2-3 days in a row, thats where I charted it to see what the support levels looked like. I am putting this on my watchlist. Again I see it bouncing off 200DMA but I would wait for a clear confirmation of the support line (purple)

$MCD: McDonalds corp.

I am tracking McDonalds. (I got burnt in $BKC earlier and I have decided not to anywhere near Burger King stock soon), I see some sell off in McDonalds and its approaching support, I would wait for it to tag the green box where I would put this on high alert radar

$WFR: Memc Electronic Materials

Waiting for the channel to work itself out on the downside, notice it’s selling off even as the market rallies… the power of tredlines hmmm… The pattern always completes?
Well thats my theory anyways….

$POT: Potash of Saskatchewan

I sold off my position this friday, I think I had too much money at stake (roughly $1000) and this stock is too volatile, I see its bouncing +-3 dollars from its TL support,
I am keeping this on my watchlist and might be interested on any breakdown in Potash, On a side note, I see weakness in $IPI and $DBA

First Solar $FSLR on my radar

First solar is selling off and I am patiently waiting for it to come to this trendline support area around $130.

Looks like its finding some support at the 200 DMA, will put this on high alert watchlist and see how it behaves in the nexy 2-3 days.

I charted the 9 month chart for $FSLR and I am waiting for it to hit the green area on the chart below. It seems to find support at the 200DMA (see orange line)

Disclosure: no Position in $FSLR at the time of writing this post

Watchlist Aug 01 2009

Looking at some charts over the weekend and doing some TA, I have come up with the following stocks I will be following closely next week. Charts pulled off www.finviz.com (great site)

$FSLR: This was sold off like crazy after the earnings came out, still not completing the pattern and hitting the support. I will wait until it bounces off support trend line. Target @ 140

$WFR: Still on my watchlist, waiting for the pattern to selloff to support trendline. Target @ 16

$POT: This looks interesting, will see which way this goes, I would like to see some sell off along with the market so I can establish some longs

$DBA: Seems to be holding TL support. so far so good, I am thinking of adding more here

$FIG: This is going higher in anticipation of the earnings release. We have 200 shares @ 4.11, game plan is sell 100 just before earnings or sell covered calls @ 5 and @7.5 to collect some commissions just before earnings. I will post the trades here on the blog