*****Note: Sold the other ½ of K at 67.70 reason is we had trade for 3 weeks-hasn’t really moved with market. I have learned that there are certain stocks that have a rhythm that is not in synch with my style of trading. Rather wait now for a confirmed phase change to recovery or once it fills gap to 70.00.
***Note: Lower stop RSX 16.37 on our ¾ position. Raise stop in FSLR now to breakeven 53.09
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***OUT 67.70 other ½ Existing Position: K: Long ½ position 67.64 ATR: 1.27
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****Existing Position: FSLR: Long ½ 53.09 ATR: 2.12
Name of Instrument: First Solar Inc
Current Price: 56.17
Breakeven Stop: 53.09
Reason For Trade: Those of you who have known me for a while know that I like the solar industry as a growth area over the longer term. First Solar reported robust 3rd quarter earnings. Technically, we waited to buy once it corrected to and held the 200 DMA. In an Accumulation Phase, the correction gave us the opportunity to buy against 3 major moving averages: the 50, 100 and 200 DMAs. Our stop is generous to allow for a smaller position size given current market volatility. Our stop is also under the 65 week moving average. If the market holds up, a close at the end of November over 56.20 is a breakout over the 23 month moving average. If the market fails again, we have lots of room to move up the stop and reduce the risk.
First Profit Target: 59.79 for 1/3-1/2 off with no loss stop when/if it trades close to 57.00
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***New Position: JO: Long 1/2 position 18.95 ATR .48
Name of Instrument: iPath Bloomberg Coffee ETF
Current Price: 19.66
****Lowered: 18.44
Reason For Trade: 3rd probe only this time ½ position with risk to under last swing low. I will look to add over a confirmed phase change to recovery. For now, the gap higher and close on the highs with good volume was reason enough to try a long again. Also, a story came out that ”the main threat to Colombian coffee output now, after the mass replanting program with rust-resistant trees, appeared to be rising wages, which now accounted for a bigger chunk of production costs than the historic 40%.”
First Profit Target: TBD for now
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***New Trade: RSX: Long 3/4 position 17.67 ATR: 42
Name of Instrument: Market Vectors Russia
Current Price: 17.29
***LOWERED Sell Stop: 16.37
Reason For Trade: Clearing the 200 DMA and in an Accumulation Phase, fundamentally Russian stock market is trading at the highest levels since 2008. Technically, our stop is under the 50 and 100 DMAs for room. There is a 65 week moving average at 18.22. If that clears it will be the first time since it did so briefly in July 2014. Biggest overhead resistance is at 20.20 the 23 month Moving average. If it catches a move over that level it is a good trade to hold even a tail into 2016.
First Profit Target: 19.17 for ¼ to 1/3 off
