A few weeks ago I was talking about making some easy money when Trina Solar got down to the $15 or $16 range. I wanted to hold on until the market dropped TSL to below $16 a share, which it did.
Then I was hoping to get out at either $19 or $20 a share. And this happened today, the trade was exited at $19.56 for most the quantity, slightly lower price for the rest.
Trading a stock like TSL gives the short-term trader who doesn't want to take a loss the option of leaving this asset in place. No most traders will cringe to hear this, because the mantra is to be able to cut your losses in any stock. Never fall in love with a stock, right? But in this case, if you have the capital to sit tight a stock that moves against you there isn't a better quality stock at a reasonable long-term price than Trina Solar.
The catch is that I don't believe in the stock too much right now above the $20 to $22 level. TSL was trading around $25 when it took a substantial hit in May of this year. Since then it seems to give back pretty quickly when it gets over $20 per share.
Did the trade get closed too quickly? Probably so. But in this market I'll take my quick $4 profit on a quick little position trade. It will be very interesting to see how TSL trades from here. Will the stock climb (abruptly) up to $22 and then rollover again? Or will Trina get moving back to the $30 range?
I happen to believe it will fall here relatively soon. The good news for any TSL traders is that we may be presented with the exact same opportunity as before. If Trina Solar can get back to the $15 level (or even $16) be prepared to jump in.
The added good news this time is that the overall market has given back pretty good percentages over the last eight trading sessions, so there'll be a little less froth to the whole market. That's good news for the institutions and value buyers of TSL, who know that this well run company is going to be a major player in solar panels for the long-term.
For the short seller community, I wouldn't recommend shorting TSL here, just because it can do anything including easily running to $30 and beyond. But I would suggest getting ready to buy Trina if the stock gets back to $15 a share. It's a good proposition for the short-term and next to guaranteed for the long haul.
