In addition to tonight's new candidate, consider these stocks as possible trading ideas and watch list candidates:
MCHP - This tech stock looks weak after breaking support near $35.00 and its simple 200-dma.
AEO - This apparel company is showing strength. A rally past resistance near $18.00 could be an entry point.
TITN - TITN is also showing relative strength. I would be tempted to buy this bounce with a tight stop loss. The big volume on the recent rally is bullish.
HMIN - Shares are breaking down under major support near $25.00. This looks like a bearish entry point.
NEW BEARISH Plays
First Solar, Inc. - FSLR - close: 19.25 change: -1.40
Stop Loss: 22.25
Current Gain/Loss: unopened
Time Frame: exit prior to earnings in early May
New Positions: Yes, see below
Why We Like It:
Shares of solar energy company FSLR have been churning sideways in a wide $20-24 range the last couple of weeks. That changed today when the stock was downgraded to a "sell" before the opening bell. Combine that with a widespread market sell-off and FSLR broke support and hit new record lows.
I am suggesting small bearish positions at the opening bell tomorrow. Broken support at $20.00 should be new resistance but since FSLR can be so volatile we'll use a stop loss at $22.25. Please note that we want to keep our position size small to limit our risk because the most recent data listed short interest at 42% of the 59.8 million share float. That does raise the risk of a short squeeze.
Readers might want to use put options to really limit risk.
Suggested Position: short FSLR stock @ (the open)
- or -
buy the May $18 PUT (FSLR1219Q18) current ask $1.37
Entry on April xx at $ xx.xx
Earnings Date 05/03/12 (unconfirmed)
Average Daily Volume = 7.1 million
Listed on April 23, 2011