Monday, February 11, 2008

Buy: FSLR (173.19) is displaying a strong bullish divergence


Rationale: FSLR hit a deep momentum low on January 17th and bounced strongly higher to it's 20 day EMA. Now with this second pullback, price momentum is suggesting higher prices above the $200 level. SPWR and STP share similar formations. (Note: The solar stock theme is quite popular as an alternative to energy fuel, however, expectations are very volatile and frothy because of its infancy and emerging fundamentals. Multiples are ridiculous although earnings surprises the last two quarters have been quite strong. Earnings are reported Feb. 13th. Play these stocks lightly and tight.)
Target: 200.94
Stop: 161