Day Trading Solar Stocks - Update

Today's stock market update is for those of you that use the lower time frame to intraday trade.

It was on the 5 min. So therefore this video is for you more active traders out there. I have had solar stocks in my watch list because I have been looking to short a potential rally in them. They have been dropping a lot. But I was waiting for a rally so I could see if I could go short on that rally. And then a potential test of that potential low where that rally occurred from. But because they were in my watch list I saw something yesterday. I saw that they were up early on in the morning while the market was just chopping around. That made me look at them.

Another reason I also looked them I saw multiple solar stocks up. Not just one stock that could be because of news, CFO change, CEO change, earnings, anything like that, no, it was across the board. When the solar stocks all climb together it means there is something going on. It is not just a random move for example. No, there is something behind this move. What it is I don't know and I really don't care when I trade a 5 mins. All I want to know about it is that they all do it together. And when they all do it together it increases the odds that it will continue to do it intraday.

So I then go and look at these stocks. First Canadian Solar. What I then do is my analysis. Then I go and do my phase analysis. I see we break out of this phase 1. Then I see we got a continuation pattern here. That gives me that higher low than this. So this is a confirmed uptrend. A confirmed phase 2. And when this pattern here gives the trader the target. I was not in this time because I only saw it yesterday when we rallied up here. But when we get our target fulfilled had we traded this it means the trend is intact. Then what I look for is entry intraday yesterday when I have done my analysis.

But I don't just enter this trade because it is in an uptrend or I want to trade. No there was something going on in these stocks. That is what gives you that extra edge, the higher odds setup. There was something going because all the solar stocks were climbing. That is your extra edge. Don't just trade for the sake of trading. Wait for the market to hand you something. A present. You are rewarded for your patience. That is what I got yesterday, a reward. But what I did was I saw, you know, that move up here, when the market was chopping around. Because the stocks are moving so powerfully up and then market is not, it give us that thrust in relative strength we see down here. Then what I then look for is a small consolidation that happened yesterday.

Because the consolidation is so small I am not waiting for a close outside this trendline. Because it is so small anyway. What I will do is I will trade and I did when it takes out the high of this consolidation. That attracts the momentum buyers when it makes new intraday high. And the same time people going short here are caught on the wrong side and have to cover. So I am using that to enter. But the reason why I make money is not just because I enter a continuation pattern. No I have done my analysis first. All the solar stocks were climbing. They were even climbing very nicely when the market was just chopping around. Meaning that this is not taking the market into consideration this time. No it wants to climb, the solar stocks wants to climb regardless of the market. That's strength and that's momentum. So that is what I traded yesterday.

Let me just show you another stock FSLR. It goes the same here. You got your phase 1 break out. And then you got your continuation pattern. In this case it is an Ascending Triangle. And it breaks out of that. Next day is when I see it here. And then I get my small consolidation here and then a thrust up and I book my profit. Because it is a 5 min chart I am not holding overnight. Not necessarily saying it won't climb the day after but for me when it is a 5 min chart the stop is tight and it does not take that much overnight price action to stop me out. So I am not going short. I am not saying it is not going to go up. But it is wise for me to book my profit because I am trading on a lower time frame.

The same goes on here that we got this thrust up in relative strength because price is climbing very nice while the market was chopping around. Here is another stock. The same, it breaks out of a phase 1 and climbs. We see that thrust up in relative strength as well.

So let me just recap this. This video is for more active traders but what I did yesterday was that I was like any other day waiting for the market to hand me some sort of an opportunity. I don't necessarily need to put on a trade every day. I don't want to force myself to trade every day and then lose money. And then when I have a profitable trade, my old loss kills a lot of my profit for that trade. No I wait for the market to hand me something. I noticed it because all the solar stocks were up while the market just chopping around. That is relative strength and it tells me something is going on in these stocks.

Something important enough that the trend might continue intraday and then I can make money on that continuation of the trend when I see a little bit of consolidation. So that's how I traded the solar stocks yesterday. That's how I saw them. That's how I analyzed them. And traded them. This ends today's video. I hope you have enjoyed it. Good luck.