Some great action in FSLR after reporting today. It immediately drove up from 175 to 187. There was a pullback to 180 where the bid momentarily held before dropping out to 179. Before you could blink it drove up to 190. This powerful drive got us to start thinking about where to buy on a pullback. Gman was thinking 185 would be a good spot to get long and I agreed.
But then something changed. A seller appeared at 187 and actively held the offer. I thought to myself that this was still two points from the 185 area so perhaps a long would still work at that price. FSLR started to trade down from 187 as sellers stepped down to lower prices. Then what appeared to be the same seller that I saw at 187 was at 185.25 holding the offer. Buying at 185 was no longer an option and it was looking like a pretty good short.
When the 185 bid dropped it traded down to 180 in about 60 seconds. During the next 15 minutes the range got tighter and tighter and the 180 offer wouldn’t lift. This was a great shorting opportunity. But I was just a spectator. Gman got a few shares at 178.80 as it began to drop. It actually dropped all the way to 166 when an active buyer stepped in and bought around 50K shares. This is where we bought and caught around a five point up move.
As I am writing this blog Gman got long on the pullback to 166 but it doesn’t seem like anyone is interested in pushing it back to the 170 area. After I get back from the Mets game I’ll check my after hours chart to see how Gman made out.
Don’t forget to follow us on Twitter!