I have been late getting in the bed the last few nights, and the lack of sleep was really taking a toll on me this morning. I didn’t get into the office until just before 8:00. I arrived to see tradeitup shorting the YM pre-market. Just about the time I sit down in my chair and get ready to read some charts, the YM spikes up and we lose $750. Screw you Helicopter Ben! With the crazy action in the futures and stocks gapping up I was cautious early in the morning only trading 100-200 share blocks in SPWR, FSLR, and DE. Had a small loss in DE because of a tight stop. Took a small profit in SPWR that should have been a nice winner, but I was afraid of the market. Here’s that chart.

My best trade came in FSLR. I was long early in the morning when we tried to break the opening range. Around 10:30, I was seeing weakness in FSLR and shorted 100 on a tick down and then added to the position as we came back up to the 20-SMA. I had lost a little on my early morning long so I was trying to keep my losses small on this trade.  We had a little break down around 11:30 and I took half off, added lower on a head fake and then got out when FSLR started trading sideways. I was watching the action in the YM as it broke above the 20-SMA and then back down sharply. When this breakdown happened I knew bulls would get nervous and FSLR was going to tank. I immediately shorted 500 shares at the market, and it was straight down from there. As the trade went my way I started to get the itch to cover, but I consciously forced myself to stay in the trade. I noticed the volume picking up and this helped to confirm the sell off. I never had a trailing stop in, but I knew where I would start to cut exposure if it did start to turn around. When we broke below the morning lows I covered 300 shares and held on. As we approached yesterday’s close I looked for support. On the first sign of a pop I covered the remaining 200 shares right as the MFI bottomed out.

Overall this was a perfect trade. I saw the weakness in FSLR and capitalized on the opportunity. I kept my cool and didn’t cover too quickly, but when I saw support coming into play I was out. All-in-all I made $1,800 on this trade, pushing my total gains daytrading FSLR to $4,200 since 11/09/07. Man I love this stock!