Trading an alternate energy “hot” stock…

Jinko Solar.

A Tuesday Trade Edition: One of the most important concepts in trading is to review your work, and learn from the good and the bad. It’s critical to identify what’s working — to do more of it. Each week, you’ll get a trade from my trading journal, in which I explain my whole thought process from start to finish. Trading is all about finding something that works, and applying it, over and over again. That’s how you find trading success. So study up on this “Tuesday Trade” and let’s get to work.

Here’s a trade in Jinko Solar (JKS) that I came across because I was using my newly updated Phoenix Finder tool. Specifically, I was looking at a hot industry group. This is the same industry group that’s been “hot” since the month before and after the election.

What’s that industry group?

Alternate energy…

I made a similar play in Fisker Inc. (FSR) following these same ideals, which I’ll talk about later, but we’re going to focus on JKS today

After all, JKS is another alternate energy play.

I noticed on my Phoenix Finder that this was pulling back right into a key area of support. So I went ahead and bought long calls on this because we had an upcoming earnings report.

If you know me, you know I love the run into earnings. Obviously, I wanted to trade the run into earnings on this, but I also wanted to trade the rise of the phoenix on a hot stock in a hot industry group.

Now keep in mind I bought these long calls but they were a little expensive. I bought them at about $8.50 a share, and I got out around $12.50. That’s a profit of about $400, or about a 50% gain or so.

It was a pretty solid trade that occurred over the course of a few days.

However, I actually ended up taking my profits earlier because I thought there was an upcoming earnings report coming up sooner than it actually was. But more importantly, I started seeing several Turbo VZO sell signals. I went ahead and took an exit on this because there were some VZO sell signals, even though it wasn’t all the way at the 127.2 extension and it wasn’t at the earnings report either.

But I wanted to be safe rather than sorry in this case. So this is a good lesson in being comfortable with the profit you’ve made so far, and not feeling the need to push it any further. I probably could’ve picked up some more additional profit, but in this case, I opted for the safer exit based on what the tools I trust were telling me.

1 thought on “Trading an alternate energy “hot” stock…”

  1. Thanks Ms. D.
    you mention a ‘new’ Phx find and want to make sure it’s the same as i have.
    i joined in Sep from the Chaikin promo and that’s the PF i have. i’ve been a member there since ’16.
    I’ve been very happy with my results off your program but still feel unsure on some areas. specifically when doing flys on tos how do i do analysis of where best to position the trade. If i use the fib tool to target a probable target then i get lost as to which would be the best strikes to build around the target and how much time to let it run. If you’ve got any of your past classes that address that please tell me how to find. I’ve been watching your recent series on options and maybe you’ll cover this when you get to the fly construction module in the future.
    Thanks again and Merry Christmas and Happy Holidays
    Dave Lowenthal, Frisco TX

    Reply

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