Solar & Alter Energy stocks

Solar & Alternative Energy Stocks 12-10-07 (Monday): Occasional thoughts on alternative energy issues.

FSLR (First Solar Inc.): “T8 tap dancing”

The T8 is the moving average that we  us to define trend.  In other words, if the T8 is pointing up, we consider the trend to be positive.  Of course, the opposite holds true for T8 that are in a down trend.   With a positive trending T8, our preferred moving average, we are looking for only long positions. The rules are simple: a. take only trades (buys) in the direction of the trend (the T8, which is pointing up) b.  buy openings below the T8.

This simple set of rules has triggered five trades since  10/12/07.and On each occasion, the price has opened lower than the positive postured T8. Some issues are more orderly than others.  FSLR falls into the category of “well-behaved”.  Of course, market conditions can change an orderly situation into chaos.  This is an excellent approach to many types of trading.  Simply stated:  buy touches of a positive T8.  The first retracement is always the most important and offers the largest potential return.

 Please take advantage of the FREE 7 DAY TRIAL to The Morning Call ( we discuss 21 futures, ETF’s, E-minis, NASDAQ & Solar & Alternative Engergy issues ) & The Mechanical Monkey where we discuss our mechanical trades.

Daytrading 12-10-07 (Monday): Occasional thoughts on scalping the market.

XTXI (Crosstex Energy Inc.): “Trading the Pipe”

In the case of XTXI, our momentum oscillator, the Chande Momentum Oscillator means very little.  But much like Little Richard, we put it on the chart because it’s so beautiful.  Our daytrading setup consists of a number of moving averages.  First and foremost, we use the T8 (maroon line) to determine trend.  We will only take daytrades in the direction of the T8.  Our second and third set of moving averages are three-day T3 averages of the highs and lows.  The T8 is represented by the fat maroon line on the chart.  The highs and the lows of the T3’s are represented by the dotted red and blue lines on the chart. 

At the number “1″ on the chart, we can see that the T8 is pointed down.  Since we only take trades in the direction of the T8, our exponential moving average,we are looking for short positions.  The rules are simple:  a. take trades in the direction of the trend b. short any opening above a downsloping T8  c. short retracements to a down sloping T8  d. the opposite applies for all long trades. 

As one can see, there are even better parameters set by bracketing price with the average highs of the T3 and the average lows of the T3.  This envelop defines most days highs and lows and allows a trader a well-defined set of numbers to place limit orders to buy and sell.

The three large red arrows below the number “one” are days when the T8 was negative and the market opened above the T8.  These are three opportunities to short the opening.  The three smaller arrows below the number “two” are opportunities to short when price retraces to the T8.  The arrows above the number “three” are three opportunities to buy XTXI on retracements to the trend (T8).  Number “four” represents an opening below the T8 and an opportunity to buy the opening. 

 There are many days when the price touches both the T3 highs and the T3 lows.  These brackets can be great boundaries when trying to extract a few dollars from XTXI on a daily basis.  Set your own rules, but trade with the trend and allow the T8 and the T3’s to guide you in and out on a daily basis.

Please take advantage of the FREE 7 DAY TRIAL to The Morning Call ( we discuss 21 futures, ETF’s, E-minis, NASDAQ & Solar & Alternative Engergy issues ) & The Mechanical Monkey where we discuss our mechanical trades.

Energy Stock Directions 12-05-07 (Wednesday): A Technical Analytical View of Solar and Alternative Energy Stocks.

STP (Suntech Power Holding Company Ltd.):  T8 supports market all the way up!

In a report that we published in April, STP was one of the tweny solar and alternative energy stocks that we recommending trading.    At the time, STP was trading in the thirties.  Many times when a stock more than doubles, there is a tendency to shy away from participating in the move.  Many traders feel that the potential has been reached when a stock doubles or triples its price.  Don’t allow these thoughts to curtail buying in some of the strongest stocks trading.  Many of the stocks that fall under this sector have put up spectacular numbers this year.  Take the ride, enjoy the view.

The Chande Momentum Oscillator, our preferred momentum oscillator for STP , has turned up before hitting its lower trigger level, and that’s a very positive sign.    

The direction of the T8, our exponential moving average and trend definer, has been positive since the middle of October.  We would like to see the market to drift down to the T8, at that point, but first we expect the market to rally. Retracements to a positive T8 are almost always buying opportunities.  Please note that there has been nine retracements or openings below the T8.  All of these entry opportunities have turned out well.

Tuesday’s candle was a “bearish engulfing “. “Bearish Engulfing” candles are signs of market exhausting itself on the upside. Look for movement to  continue down to the T8.  We would like to buy the retracement of this bull flag that the market is painting.

***Volatility Alert:

During the third week in July, volatility returned to the major stock indices. For approximately four years, the markets have had low to very low volatility. This significant change has ushered in swings of 100, 200 & 300+ points, sometimes on a day-to-day basis. Stock indices tend to be either volatile, or not, for three to five years at a time. Expect continued volatility. This volatility cycle is in its early stages and we continue to believe it is here to stay.

Please take advantage of the FREE 7 DAY TRIAL to The Morning Call ( we discuss 21 futures, ETF’s, E-minis, NASDAQ & Solar & Alternative Engergy issues ) & The Mechanical Monkey where we discuss our mechanical trades.

Energy 11-28-07 (Wednesday):  A Daily Technical View of Solar and Alternative Energy Stocks for online and day traders.

Energy Conversion Devices, Inc. (ENER): Possible rally off of quad-tip bottom.

ENER rally Tuesday creating a piercing line candle on its chart.  The previous four days of trading marked four days of wick extensions below 25.15.  This action begs for higher prices.  Look for resistance in the 25.85 area.

Please take advantage of the FREE 7 DAY TRIAL to The Morning Call ( we discuss 21 futures, ETF’s, E-minis, NASDAQ & Solar & Alternative Engergy issues ) & The Mechanical Monkey where we discuss our mechanical trades.