****Cancel for tomorrow: End of Day: FSLR: Raise trailing stop last 6 min b4 close to 57.49
TAN: Last 6 min b4 close, sell 1/2 position 27.22 stop, keep 1/2
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****Sold ½ Position at 59.79 Existing Position: FSLR: Long ¼ 53.09 ATR: 2.12
Name of Instrument: First Solar Inc
Current Price: 58.84
Trailing Stop: 54.49
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.
***REACHED! First Profit Target: 59.79 for 1/2 off
Second Target for another ½ off: 64.00
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Existing Position: TAN: Long 27.42 ATR: .64
Name of Instrument: Guggenheim Solar Energy
Current Price: 27.70
Sell Stop: Wide 25.22 for a buy/hold
Reason For Trade: Volume patterns have been uniquely big. Since December 2nd, the average daily volume has increased up to 6 times the norm. With oil’s decline, TAN has stayed under pressure, but has not broken down beneath November lows. The 2015 low made on September 29th is our risk now as I want to give this enough room for a buy/hold type trade. To risk 4 ATRs is not typical, but the room is necessary so we can give it time to see if the recent volume spikes are indicating a true bottom. As a megatrend, I have no doubt solar energy is the future. As a tech trader, if the bottom holds, we will have a huge winner taking first profits at nearly 8 ATRs away. If Tan can clear 50.00 in time, I see no reason why it can’t go to 100-120 next.
First profit target 32.20 for 1/2
