****Notes: RSX: out at 16.24-tried to give this enough room but in the end, the oil collapse was too much for it.
***FSLR: Sold 1/2 position at 59.79. New stop on balance: 54.49
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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: 59.65
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
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New Position: Long AXL 22.66 ATR: .48
Name of Instrument: American Axle and Manufacturing
Current Price: 22.56
Sell Stop: 21.73
Reason For Trade: First, the company reported better-than-expected earnings for the third quarter of 2015. It posted third-quarter 2015 earnings of 78 cents per share that surpassed the Zacks Consensus Estimate of 67 cents. Moreover, earnings increased from 57 cents per share recorded in the third quarter of 2014. The company reported net income of $60.9 million compared with $44 million in the prior-year quarter. Technically, it is in good positon on the daily, weekly and monthly charts. The 23 month moving average is at 21.00, the 65-week at 21.86 and the 200 DMA at 22.40. However, lessons of the RSX trade, if cannot hold the 200 DMA (which still has a negative slope) will do a quick exit and re-evaluate.
First Profit Target 24.00 for 1/2
