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| GOOG weakness Friday told me to short gap up this morning. |
I came in today not really sure what to expect, given that I was out Friday and really didn’t watch the market at all. One thing I did see right away was Google, Inc. (GOOG). GOOG gapped up nicely on earnings Friday and proceeded to sell off all day long. It closed at $611.83 after hitting a high of $641.73. This action told me to look for a short trade in GOOG if it opened higher this morning. It gapped up $2 pre market, and knowing the low of the day was $611.36, I shorted 700 shares at $612 with a stop one dollar higher at $613.
This is the type of trade I generally don’t do pre market, but the stock was just yelling at me that it wanted to go lower. Call it a good hunch. Needless to say, I was able to cover ½ my position at $610 and held a little closer to the open. I covered the rest of my trade at $607.50, a 4.50 profit pre-market! A nice star to the day.
Since the market opened, I haven’t even looked at GOOG. I made my trade in it and have moved on. And boy were there a lot of trades to make this morning. MCP was trading down slightly before it got halted after announcing a secondary offering. It went all the way down below the 50 day average of $40.52 and hit a low of $40.25. After being un-halted, though, the stock has traded sharply higher after Molycorp provided some qualification of the announcement. The secondary offering will fund Phase 2 expansion of the California Mountain Pass mine, an exciting prospect for investors.
I was able to catch a few nice trades in China Shen Zhou Mining & Resources Inc. (SHZ) off MCP’s news and have made about $2,400 in it so far today. I bought tier 4 down in the $6.20 range and it is currently printing $6.55. Buying SHZ on MCP’s rip was the trade for me. I tried REE a few times, but it has not paid me yet. It had negative news over the weekend, so it’s got a little cloud over its head.
The solars have also been rockstars today. First Solar, Inc. (FSLR) was added to Goldman Sach’s conviction buy list and it cleared a nice resistance area around $149. It is currently printing $152.67 and touched a high of $155.38. The way it is trading currently leads me to believe we will see new highs in this stock by the close. Time will tell. I was able to capture JinkoSolar Holding Co., Ltd. (JKS) this morning for a nice trade at around $29.65 and rode it to $30.10ish. Again knowing my sectors has paid huge dividends in my trading day.
This is also the type of day, at least for me, where taking profits is key. The moves in MCP were fast and furious early on, and if you were a holder you may have been stuck with your position going the wrong way. I always like to take profits on most of my position, hold a feeler, and see where the stock will go. The moral is you never go broke taking profits! Good luck trading the rest of the day.
*DISCLOSURE: Long SHZ
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