FuelCell Energy, 30-minute Chart
The alternative energy stocks saw a lot of action on Friday because of the power failure in the northeast. Does it make
sense to buy FCEL, PLUG, CPST, etc. on Friday because there was a brief blackout on Thursday? Of course not. But fighting the tape wasn't the right
play, and those who got short Friday morning felt a jolt at the end of the day as price surged higher.
Not all dumb action is worth fading. Instead of looking to short, it would have been smarter to respect the trend and
get long above the nice hammer that formed in FCEL with
the 11:30 bar. That was a play worth 20 cents of risk, right?
Plug Power, 30-minute Chart
PLUG put in its hammer test of the morning low with the 11:00 bar. Trading For Dummies techniques at work once again: buy stop above the down
bar, with a tight 15 cent protective sell stop entered upon being filled long. Target would be a test of the morning high, or you
might just choose to carry it into the close after moving your protective stop up to breakeven.
KISS: Keep It Shockingly Simple.
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