Semiconductors and technology have been outperforming for over a week, as institutions stepped up buying activity in a big way. Specialties in the industry group include solar components and equipment manufacturers. While we scan for opportunities in technology, there are income opportunities as well as day and swing trades. Below is a list of the Top 10 semiconductors as of Wednesday close.
Note PXLW: The chart looks pretty bullish for this “inexpensive” chip stock. There might be some potential, similar to what we saw on KLIC earlier in the week. Note MACD caught our attention.
Renewable Energy – Solar
Canadian Solar popped up our radar Wednesday, as many solar stocks broke out of bases. We are considering an income trade on CSIQ, by selling the October 18 call. Earnings are August 17.
We’ll look to start a position on CSIQ using the Trade of the Day (ToD) setup. If we see a surge in prices, we may sell these at 1.50 or better. Stay tuned. Details below the chart.
Buy CSIQ, Sell CSIQ Oct17 18 Call
BUY CSIQ B: 15.02 A: 16.45
STO CSIQ Oct17 18 Call B: 1.1 A: 1.2
STATIC RETURN % (IF UNASSIGNED) 6.69%
COVERED CALL RETURN % (IF ASSIGNED) 16.11%
BREAK EVEN $15.35
First Solar (FSLR) is a potential short term swing into earnings. The company is scheduled to report on August 02, after a huge beat last quarter (May 02) +292%.
As Nasdaq climbs, we continue to sell into strength, those winning stock picks with large gains. Remember, technology has a track record of unusually bullish seasonality in the month of July, followed by the opposite probability in August. We have kept partial positions, as we bank our winnings. If Nasdaq begins to hold these higher levels, we will consider our next strategy, as July unwinds.