Tuesday, May 13, 2008

Smaller Solar Companies Popping Up With CSIQ

Here are the earnings plays from today. A lot of these are now extended but worth putting on a watchlist to see if they consolidate their gains nicely and offer up a future buy point. FSYS and FLR look the best out of all of these.

FSYS, FLRMPWR, GIGM, PAL, DTSI
Charts from Telechart2007, Courtesy of Worden Brothers, Inc.

The shippers have had a tremendous run in the last month or two, but some of the smaller ones are running close to resistance. If they break out, it will be a good sign for the entire group.

OCNF, SBLK, EGLE, TNK
Charts from Telechart2007, Courtesy of Worden Brothers, Inc.

CSIQ had absolutely blowout earnings this morning and was up as much as 30% before losing some of those gains into the close. I have pointed this chart out many times before but it was pretty choppy as it formed a handle and made it difficult to hold this stock. If you did, congratulations. Because of these earnings, many of the smaller solars popped up a bit today on higher volume. These stocks face a ton of overhead resistance though and have popped up like this before, so who knows if they will continue higher or not. SOL releases earnings tomorrow and they could add more fuel to this fire with a good report or extinguish it a bit with a bad one.

CSIQ, ASTI, SOLF, CSUN
Charts from Telechart2007, Courtesy of Worden Brothers, Inc.

Some of the Market Monitor scans are showing high numbers, indicating the possibility of a pullback exists in the next few days, so be aware, especially since this is options expiration week. I would not be surprised to see a fairly big down day in the next two days. Tightening stops on nice-sized gains may not be a bad idea, and I would be extra careful in taking on new positions. However, as long as the short-term support levels mentioned in my earlier post hold and volume is lower, then there is no point in getting extra bearish. I continue to see very little in the way of short possibilities in my scans. It continues to be a stock-picker's market - not easy for bears, not easy for bulls, but there are opportunities available to make some money. Best of luck Wednesday.

2 comments:

Dave M. said...

As a full-time trader since 1992, I have many scars and have made the same mistakes as you. I think you are doing just fine. Keep up the second guessing of yourself and always be hard on yourself. It cuts down on the mistakes. Never fall in love with a stock. From the day you buy it, always look for reasons to sell it. I'm an intermediate term trader, and I rarely, if ever hold onto a stock for longer than 6 months. I've got all sorts of rules I follow. Some strange, such as if the stocks drops 10% in one day, just on a analyst downgrade, I sell immediately. Something is wrong with the situation.

Keep up the good work and I love your blog. Us traders need all the bird dogs we can get. Thanks for the ideas!

Mac said...

Thanks for the kind words. I am tough on myself because I tend to be a perfectionist. That is not necessarily the best quality to have as a trader, because it is impossible to be perfect in this line of work.
I'll learn though as I go and improve.