FSLR, First Solar update

fslr oct 25 2011fslr feb 2012

On the left the Oct 25, 2011  blog, and on the right the Feb. 25, 2012 picture. The e-wave turned out to be a little on the short side, which happens when the stock is in a hurry to get going, and then the -wave , which was expected to go to $50 or so to keep proportionality with the A-wave, actually went beyond that and got all the way to $30. Needless to say, if you were short you would have bought back for 60+% gain, if you are still short buy it back now. The stock could easily go lower but the most recent rebound, from $30 to $50 is a clear (maybe, maybe not) 5-wave structure, followed by an a-b-c retracement to $35 (about 3/4!). The c leg could start any moment and take the stock up about $20 from here. But the count is not perfectly clear so one should leave it alone or work with a tight stop at $29 or even higher.

fslr s feb 25 2012

Either one of these trajectories is possible, which essentially means that what you lack in certainty must be compensated for by discipline, hence the stop-loss.