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Tuesday, December 4, 2007

Hedging Today...My Stocks Are on Fire!

I decided to play today without a stop on FXP. I'm going to be giving up my gains in this stock, but I'm still up huge because of LDK. I bought more shares of ETFC for an intraday trade. I think FRPT will be strong for the next few days. I'm looking at RCH and CTDC as momentum plays.

Practically all my positions went well for me today and I was up about 5% in my portfolio while the indexes were slightly down. LDK Solar just went ballistic today on news that they will have $700 million for financing after tapping into their line of credit along with loans. Coupled with the momentum of other solar stocks, both catalysts sent the stock up about 27%. The huge run up also implies that investors do not believe the accounting irregularities' claim by Charlie Situ. This stock has been highly manipulated by the big boys and it is just the classic example of the small guys getting screwed. Management was sure there were no discrepancies, but the corporate media pounded the stock with negative news, lawsuit claims, and shorting before picking up shares at the bottom. The pop today is only vindication for those who held on and/or averaged down before selling into today's rally. I expect a continuation play tomorrow and it could go to $50 as the day traders hop in late. I've been holding this stock since October 8th and have been picking up scalps on the way. LDK has been very nice to me without a doubt.

I closed my position in FXP at $72 for a small gain. The sellers did not take as much control as I thought they would in the last 2 trading sessions so the risk/reward to the downside isn't that lucrative anymore. We are consolidating in a narrow range and it's best to be in cash and wait for the market to determine the direction. I'm cautiously bullish that we will have a Santa Claus Rally.

Purchased FRPT at $9.60 and it closed the day at $10.15. There have been huge blocks being purchased in the last 3 days by institutions. Compound that with technical indicators and you get a stock that is ready to rally.

Bought CTDC as a breakout play above $5.80 and sold most of the position for a scalp play. I'm happy that I kept a small position to benefit from the huge run up in the last 15 minutes of the day to close at $6.97. Like LDK, this should be a continuation play after breaking a long term downtrend. I see the 50dma as the first target at $8 and I might repurchase shares for the scalp.

ETFC was my only disappointment as it traded down to $3.94 for a loss of about 4% for the day. I expect this to go back to $6 in the near term as the stock is in a rising channel on the daily timeframe.
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