Sunday, October 10, 2010

My best swing idea...

As I looked through my watch lists I saw a few good looking swing set ups particularly in the Chinese stocks. The Chinese stocks and in particular the solars seem to be making a run here. In fact, the solars have been leading the markets higher over the last month or so. So I would give preference to swing ideas in this sector preference to others in my portfolio. My idea from the sector comes from one of the speculative ones as opposed to the leaders (SOL, JASO, SOLF) is CSIQ.

Below is a chart of the set up I'm looking at:

I believe that we are in the last third of this up trend and in this part of up trends speculative stocks tend to be the biggest movers. Although I believe that this stock has the potential to explode. I think it is better to set a realistic target that offers good risk/reward and monitor price action around this level to either get out completely, take a piece and tighten a trailing stop or continue holding looking for more R's. The levels are marked on the chart.

Good luck and good trading!

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