Wednesday, April 30, 2008

FSLR = Fast Money

The markets were acting skittish after the Fed and I noticed that FSLR couldn't get back over 300. Went short BIG on a break of the consolidation and covered 14 minutes later for the fastest money I've made all year.


Prospectus said...

Outstanding trade!

Glad you're tweeting during the day so I can follow what you're doing. It may be better for you without Wallstreak, but it's definitely not better for me ;-)

Prospectus said...

One question: What made you go big on this? I can see the reasoning for the entry, and I assume a stop above about $298 would make sense. Was it high probability, a gut feel?

Johnson's Blog said...

thanks pro - re: FSLR - I saw a couple of indications it may stop. 1) It was making new post FED highs on lower vol. 1A) The market was weakening quickly post fed and FSLR was highly susceptible to a sell off it that continued 2) 300 would seem to be key and when it couldn't get there, printing that big candle on low vol near 300 I went on watch for a breakdown 3) Zanger in his chat had mentioned a few times that he didn't like FSLR's earnings so I factored that in 4) Bearman - a man in Zanger's chat who has to have made millions shorting FSLR had been making $$ shorting the thing all day and that gave me more confidence.

Combine all those factors and I just felt like it was the right trade to make.

As for the trade itself I actually entered in two halves - with the avg price being the line drawn on the chart.