Existing Position CBS: Long partial position at 50.00. ATR 1.74
Name of Instrument: CBS Corporation
Current Price: 50.04
***LOWERED Sell stop: 48.73 with 2 min time confirm.
Reason For Trade: On August 6th, this had a classic one day reversal pattern with an expanded range, huge volume, new low and close on the highs. It also landed and is holding the 200 week moving average. Our original risk is less than ½ an ATR to probe a bottom. We reduced the size and will move the stop accordingly. In the meantime, we are probing ahead of the premiere of the new Late Night with Stephen Colbert as well, (although mainly because the technical analysis lines up), to see if it can get as he says, “The Colbert Bump.”
Took off ¼ at: 50.16
Second Profit target for another ¼ off of original position size: 52.49
New Position: FSLR: Long 51.25 ATR 2.57
Name of Instrument: First Solar Inc
Current Price: 51.74
Sell stop: 47.57 with 2 minute time confirm
Reason For Trade: Overall, I am long term friendly to solar. After FSLR reported earnings, it gapped higher and has been consolidating since. The risk to under the 50 DMA is about 1.5 ATRs well in line. Earlier this year, after testing the 200 week moving average, the 65 week at 55.92 is in its midst. It traded over that level earlier this year. The 23 month moving average sits at 56.85. Looking back at the daily chart, I hope to stay in this one for a while as if those points clear, we can be looking at a huge winner.
First Profit Target: 58.24 for 1/2 off or 3 ATRs. Rather play with the stop then exit too soon