Wednesday Morning - Sunshine continues

Gator's Chart of the Day: FSLR

The First Solar trade is working.  I'm executing a strategy I learned from Fitz.  It's the breakout from a volatility squeeze and it is comprised of three phases.  Phase1 is the breakout.  Phase2 is the pullback to test the breakout.  Phase3 is the move higher off the successful test.  (For more detail see the Monday morning post.  http://tinyurl.com/col4auo )

I filled out the position into the close on Monday and now I'm trying to ride a winner.  (I actually started a second position in another account on Tuesday afternoon when the price stayed above 29 for 15 minutes,)  The big move up on Tuesday came with nearly 2x average volume so I am expecting some more upside.  If the stock opens down I'll look to take some profits but if it opens flat or higher I'll wait until after the opening rotation (15-25 minutes is usually enough time) and place a fairly tight stop (trailing 2%) on 1/3.  That's to insure I take some profits in case the stock moves against me.  I'll put a second stop on 1/3 just under 29 (about 28.89) and another stop under the last 1/3 just under 28.  Since I have calls I'll have to estimate what those stops will be on my options.

The high on Tuesday (29.73) surpassed the March high of 29.63.  I think the stock has a good chance to trade to 35 in the near term.