FSLR Update

Another asset spoken of specifically last night in the Daily Wrap, FSLR which is also an October $35 and December $37 call position as well as a long equity position.

Last night I spoke of FSLR in terms of a head fake move yesterday,

"I had a lot of emails about FSLR today... In my view FSLR saw a head fake stop run that was accumulated so it may be very close to an upside move... "

Before that, last Friday was a Trade Idea for FSLR using calls or long equity...

"Yesterday I added FSLR Calls, except I split them between October $35 and OTM December $37. Yesterday I posted the charts for FSLR with VXX here. These are in addition to an existing (half size) September $38."

This morning, FSLR's move yesterday does look like a head fake, as I said yesterday about head fake moves (in this case a run on stops, see last night's charts in this post showing the mechanics and 3C proof of what I believed was a head fake move) that we see them 80% of the time JUST BEFORE A REVERSAL  (this one to the upside after a stop run). This morning so far we are up nearly +3.5%.

 The daily chart, I highlighted yesterday's bullish upside reversal Hammer candlestick, note the increased volume which makes candlestick reversals about 50% more effective and of course this morning's move thus far.

In this case, the head fake move yesterday served the exact purpose that is part of one of our main concepts. On the member's site there are two articles linked to the right side I wrote called, "Understanding the Head Fake Move", there's a reason we see them so frequently before a reversal up or down.

 Here's yesterday's head fake in the form of a run on the stops, they hit a big nest of them and took retail's shares or trapped shorts at a nice discount, the bear trap momentum is one of the reasons for a head fake, the taking of a large, instant supply of cheap shares (the longs stopped out) just before an upside move is another reason, there are more, but they all focus on how predictable technical traders are and how Wall St. and we can use that to our advantage.

For all of you who are in FSLR and were a bit concerned yesterday, no matter what happens in FSLR intraday, there's plenty of 3C support and I have no problems holding and if we get an appropriate pullback with lower risk and high probabilities, we can open it up again for a 3rd time entry.

This is the 3C evidence yesterday that the shares stopped out were accumulated.

We'll keep an eye on this one, but I feel good about the position and have since it was opened (again) recently, last Thursday in fact.