The stock market had a pretty interesting day on Monday. It was kind of sloppy, but a lot of stocks that we follow did well. The solar stocks were very strong. We’re going to stay with the longs for now, so let’s see what’s going on with them.
Ambarella, Inc. (AMBA) has had nice movement. It had a strong move up Nov-Jan, pulled back through Feb, and then moved back up again. The orderly pullback for four weeks in April finished with a breakout day, and then it stair-stepped its way higher. It backed off the March high last week, and then came on again Monday as a breakout day, up 1.55, or 10%, on 3.1 million shares. That’s the biggest day since it went public. Look for this stock to extend if the market rally continues. We could see this stock get to the 21-22 zone fairly soon.
First Solar, Inc. (FSLR), one of our favorite solars, which we put a swing trade on recently, moved up in a 5-wave advance, pulled back, and on Monday, it popped 4.91, or 9.8%, on 11.5 million shares. It reached the top of the channel. The target was 51-52 and it got up to 55.50. In six-short weeks this stock has gone from the 26-7 range and doubled. The key is the resistance line which could lead to more upside. The next target is 60-61, if the market does want to take it even higher.
SolarCity Corporation (SCTY) had a massive move up to the low-to-mid-50 target, up 6.60, or 15%, on 7.3 million shares. It reached the target we put out there on it last week. It wouldn’t be shocking to see this one go up a little higher, but it’s in dire need of a consolidation. It went up four days in the row last time when it made its move up, and got a sharp pullback, so we’ll see what happens here.
YRC Worldwide Inc. (YRCW) did great on Monday. It had an explosive breakaway gap, a move up to resistance, formed a nice little pennant or coil, broke out, stalled for two days, and then popped again on Monday, up 2.87, or 15%, on 10 million shares. This stock is in run-away mode, and with 8.43 short-covering ratio, this could very well spike up into the mid 20’s before it’s over.
Other stocks on Harry’s Charts of the Day are ACADIA Pharmaceuticals Inc. (ACAD), Canadian Solar Inc. (CSIQ), E-Commerce China Dangdang Inc. (DANG), Himax Technologies, Inc. (HIMX), Hutchinson Technology Inc. (HTCH), Neutral Tandem, Inc. (IQNT), JA Solar Holdings Co., Ltd. (JASO), JinkoSolar Holding Co., Ltd. (JKS), LDK Solar Co., Ltd. (LDK), Real Goods Solar, Inc. (RSOL), SunPower Corporation (SPWR), Trina Solar Limited (TSL), Molycorp, Inc. (MCP), and Qihoo 360 Technology (QIHU).