Buzz of the Street: In and Out of First Solar
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Tuesday, September 8, 2009
Short Term Shot
by Jeffrey Cooper
First Solar (FSLR) left Train Tracks (buy signal) on the dailies last week.
A 10 minute chart today shows the first 1-2-3 pullback after a large thrust back to the buy pivot where the last impulse began which coincides with a backtest of its 20 day moving average.
This sets up a solid risk to reward buy set up for a trade.
See daily for August and 10 min for today below.
Click to enlarge
Click to enlarge
Editor's Note: Jeff Cooper had position in FSLR at the time this posted.
ENER, CIEN, and BRCM
Even up $2, I think ENER is barely higher than IP value and CIEN is now in my no resistance zone. I think both stocks will see the highs teens or low $20's without much difficulty.
I saw one options guru who had a bullish take on ENER on the front month $12.50 calls, but I think the put sales activity throughout the option chain is just as interesting.
As I did with CIEN, I would be skeptical of any merger rumors. My view is we are simply seeing unloved stocks (that have massive room to play catchup) selling at large discounts to fair value being bought by institutional players that need long side exposure. These are the same players that don't want to chase the Apple (AAPL), Baidu (BIDU), and Intuitive Surgical (ISRG) type names.
I may add more of both into strength.
As for Broadcom (BRCM), just passing along this solid upgrade, the chip name I still believe to be the best on the planet. I think the target is low and doesn't come close to reflecting BRCM's ever-increasing dominance in high growth communications markets.
Editor's Note: Sean Udall had positions in ENER and CIEN at the time this posted.
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