"Allan,
I notice csiq had some bad news. I wonder if you think it a good contender for the short list....Jeff"
Feb 19 (Reuters) - Chinese solar-cell maker Canadian Solar Inc (CSIQ.O) cut its fourth-quarter gross margin view citing faulty equipment and a dip in prices, sending its shares down as much as 17 percent.First of all, thanks Jeff for your email this morning and the idea for this post.
Below is my CSIQ 240 minute Trend Model chart, revealing a SELL SIGNAL generated on Thursday, February 18th when CSIQ broke and closed below 23.98, a pivot that was identified ahead of time as the reversal threshold from the previous LONG (generated Fen 11th @ 21.68).
CSIQ 240 minute Trend Model
But note how the Daily Model didn't flip SHORT until after the news hit:
In full disclosure, I don't follow CSIQ in my nightly stock tables (although maybe I should), but here is a prime example of how the trend changed before the news hit. Speaking of which, here is a close-up view of the CSIQ Weekly Model:
CSIQ Weekly Trend Model
An expanded Weekly Model below reveals the following Weekly Trend Signals going back about two years:
Buy week of 3/31/08 @ 21.50
Sell week of 6/30/08 @ 31.98
Buy week of 3/23/09 @ 5.76
Sell week of 7/6/09 @ 9.82
Buy week of 7/13/09 @ 13.90
Sell week of 1/11/10 @ 25.93
My new idea is to scan charts just before or just after the daily/weekly close for opportunities like CSIQ, including time frames like 240 minutes (about 1/2 day) and send out a list of these trade opportunities to subscribers. This would be in addition to the usual trade suspects I follow each day. This would also be a lot more work, but, Do what you love, or love what you do, both of which apply here (as if you didn't already suspect that was true for me).
A
