Tuesday, June 17, 2008

Add-on Buy:(SOL)

I took another position in (SOL) today at $20.73. As is my practice when I'm able to, I waited for the first 15 minutes of the market to pass, during which time the stock shot up past $21. As usual, I thought maybe I'd outsmarted myself, but also as usual the stock pulled back again. When it did I entered my order, which was triggered before 10 am.

I chose a trigger price of $20.73 which was 10 cents above the 10 wma. I wanted to see the stock clear this level, and then hold it. (SOL) traded in huge volume today - almost 7mil shares, double the average. It ran as high as 21.89 and then weakened to close at $20.77 - but it held the 10 wma several times during the day, which is the action I was looking for.

The stock has advanced enough that I've moved up my stop loss on yesterday's buy to a break-even level. My stop loss for today's purchase is about 7% below my cost basis. (SOL) has advanced about 30% in three days, so I think I need to leave it a little wiggle room. It will probably trade below the 10 wma tomorrow, but I think it will be important for it to hold the 50 dma around $19.75.

It's my understanding that the secondary offer priced today, but I've seen no additional information on this, or what the final price was. I'll comment on it when I know something more.

-Geoff

No comments: