iBankCoin
Joined Jan 27, 2008
7,405 Blog Posts

Solar Downgraded

JP Morgan had a great piece on solar stating that they believe this industry faces a number of supply and margin headwinds heading into C2H10. Notable calls has a great summary for those interested.

Looking at the chart of First Solar, Inc. [[FSLR]] one can’t help but to like their chops on the short side.

fslr

I still think this one is headed below 100 and added to my put collection today. It is possible that bad news is already priced in, but I’m willing to bet it’s not. Plus, I like the risk/reward.

JP Morgan is calling for a price target of $75-$85, that gives us about 20-30 points to the downside. If we use the low from Sept. @ 112 as our stop, that gives us 6 down/20 up. I’ll take that risk/reward any day.

If the market pullsback here, along with oil, this one will become a falling knife. Airlines were on fire today, could that be a tell of future prices of oil?

Puts in FSLR 4TW!

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10 comments

  1. TA

    FSLR has been the worst house in the neighbourhood for quite a while.
    I’m still long STP and green energy stock APWR(not a great chart either)

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  2. Respect4U

    I think FSLR over time will make its way to 90 maybe even into the 65-70 area. At which point I would accumulate it big time.

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    • RaginCajun

      I’m with you, I would love to see a falling knife type scenario. @ $70 I would load the boat– on with a longer time horizon.

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  3. ChrisBrown

    that chart is win. low volume rally for the previous 6 days and then a down day on close to normal volume today. Thanks for the post

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  4. Steve Place

    I’ve got double diagonals in the name. If it can get to 90 or 115 by next friday, i’ll be very happy

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  5. goon

    these moves in hban and fitb for real? they are breaking above resistance but could be a fakeout

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    • RC

      Financials have been smoking here, just banked on PCBC. RF ripping as well. Now, I just need E-turd to rip.

      Meanwhile, they’re trying to squeeze the cajun in FSLR, knew this shit would happen. I like your play Steve.

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  6. RC

    112 held, but im feeling uneasy about this trade.

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  7. wolf

    RC: Check out the chart on GMCR. Looks like the same pattern as last week. A low volume retrace and a bull flag forming. I know fly will tell me to shove the chart up my ass, but Im willing to bet that this makes another 5 point move tomorrow or early next week.

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  8. MDabbles

    FSLR. You going to ignore that Morningstar? Gonna bite you in the ass.

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