Solars on the Move

Well today we had dismal unemployment numbers, but yet the stock market did not sell-off. Even Larry Kudlow has stopped spewing his Goldilocks plea. The good news is that two months ago the stock market probably would have sold off 300 points with the news we had today. I am still watching XLF as it continues to hang near it's downtrend line. Notice the negative divergence on the Stochastic and MACD, as well as decreasing volume. Was very tempted to get short XLF right before the bell, but waited for a better entry, possibly Monday morning.

I hope everyone has been apart of the amazing run in the solar stocks. Big news today; there may be a new solar energy bill that will hit the Senate floor! Lots and lots of call options traded today as money was flowing in fast and furious. Pete Najarian mentioned on Fast Money tonight that he bought ESLR 12.50 calls today, I forget which month however. First Solar (FSLR), Energy Conversion Devices (ENER), and Suntech Solar (STP) all traded huge lots of calls today. I am still long Evergreen Solar (ESLR) and will continue to do so until this rally starts to fade. I will be buying solars on any pullback, at least next week. Oh, I almost forgot. Several days ago I mentioned how I was looking to enter a short position on any breakdown of STP, good thing it didn't. I just wanted to clarify a few things as I have receivedseveral emails claiming how terrible my stock picks are. First, the charts I post on my blog are not really stock picks, but rather stocks that I will be watching because they are showing somewhat predictable price patterns. These patterns do not always pan out and sometimes they do. Second, as a trader my job is to recognize when a pattern is not panning out and move on the next trade. I try to detail some of observations in hopes that you will learn something from my triumphs as well as my mistakes. This weekend I will be posting a ton of charts in order to get ready for next week. There are some really good potentials plays so make sure you check back so you don't miss out.