A week ago I said that I planned on selling my FSLR shares if they got back up to $125, and that's exactly what happened. And the day I sold First Solar I said here that I probably was selling too soon based on FSLR's rapid gains. The stock seems to have shed the downward bias that had set in over the last few weeks.
Now First Solar looks pretty good to keep running. The stock closed over $132 per share on Friday and there is no reason the stock can't keep going higher on Monday. Remember in late April of this year once FSLR broke the $130 leve the stock very quickly raced over the $150 level. This also took place back in September of 2009, when in the middle of the month the stock broke over $130 and then quickly ran up to a high of $156.
The tendency is for the low $130's to be a break point one way or the other. From the Friday close we should either get a fairly good retrenchment or, as I believe, a continued strong run.
Solar stocks have had some energy of late. The long running bears and bad news machine keep talking about overcapacity and disinterest. But the reality is that there is a sustained, long-term interest in creating a high degree of solar power. Solar energy is still in relatively high demand despite the fact that it's down somewhat from the 2007 where demand could be rated as enormous.
FSLR is the largest U.S. player in solar power (at least as a listed stock) and the company is going to have a lot of business going forward.
So as a long-term investment First Solar is not even a question mark. But it's the short-term that is far more difficult to gauge. Part of trading solar stocks is the ability to take a profit because of the volatility they have, especially since 2008.
Even though the sale was made back at $125, there is a distinct chance FSLR is set-up for another good run. Watch FSLR on Monday morning and look for continued strength. I plan on buying at the open assuming the stock begins strong.
For any FSLR owners that have been in the last few weeks, great job. For those like me, who sold a little too early, there is no reason we can't make a quick dollar on Monday morning. I will probably buy in with two purchases. One for a strict scalping play for the first part of the day, hoping to get $2 or $3 a share in the first few hours. Then another purchase for the potential of First Solar to make a charge to the $150 level.
Stand by for some solar cash on Monday morning, particularly from 930am - 1100am. Let's see if the strength of this past week runs right into Monday morning. I believe it will.
