iBankCoin
Joined Jul 30, 2008
2,107 Blog Posts

Fade the solars! CSIQ got owned

Well I’m done fading the solars.  Look what I did to CSIQ.  Murder.  Stock is still falling, but I don’t want some stupid short-cover spike to eat up the profits.  You know what I’m talking about.

Anyway, it was a great setup, and congrats to whoever played it.  We gave solars to you as a long since last week, and I said to fade them last night on a gap up.  The trade was confirmed when FSLR reversed at 175.xx, and the Dow reversed.  There was a 9-12% move on CSIQ from the top to play with, and I was happy to take about 5%.  Clean exit on the fade!  

Lesson:  Buy the rumor (coal-tapes), sell the facts (elections), especially on a gap up with low volume.  Also, make sure you cover your day trade short once panic selling starts (see chart above).  More solar fades…

First Solar, Inc. (FSLR)

LDK Solar Co.Ltd. (LDK)

Energy Conversion Devices, Inc. (ENER)

Anyway, I’m expecting a short cover rally into the close on solars.  

 

Aloha!
-gio-

If you enjoy the content at iBankCoin, please follow us on Twitter

6 comments

  1. Gio

    Is the Fly trying to trick himself with his latest buys/sells?

    shoot, i just sold half my EEV this morning at a loss.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  2. Ass Napkin Mike

    eev touches 60 by the end of the week.

    write it down

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  3. rag

    Gio:

    Really nice tutorial on the csiq trade, thanks.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  4. zee-

    Took my FSLR profits off the table 179 down to 170 made 25% profit on the Nov puts I was using—How’d you like the way I tracked down the 180 go short FSLR target?
    zee
    Tried to get back in FSLR short EOD, but went short on QQQQ instead.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  5. zee-

    SPWRA pre-announced they are going to miss earnings by 17%–down goes the sector, more than likely__ look for a gap down, I’d say.

    • 0
    • 0
    • 0 Deem this to be "Fake News"
  6. MPT

    Just spot on. Thanks for explanation. I didn’t play this game for solars but I applied this to other stocks like odfl etc. and got some quick profit. Thanks THT for insightful posts.

    • 0
    • 0
    • 0 Deem this to be "Fake News"