Unquestionably, CSIQ is a good company and the chart is still constructive (it just touched the trendlines and bounced).
But I sold at higher price than today's high and I am not buying it back yet.
The reason for selling was this: They are not a penny stock miner or clinical stage biotech who suddenly make a discovery and should go up to the moon. They are an established business with long horizon projects, so the movement should be at the speed of business. And yet, the stock doubled in 10 days and just as importantly the volume went insanely high (see the chart below).
So I had to ask myself, given the volume and the hyperbolic rise, who was left to buy the stock?
One of the advantages of being a small investor is speed. If you have a $100M shares in CSIQ, then you have to plan your entry and exit positions because you can't just sell that many shares on a dime. But if you only a few thousand shares, then you absolutely can get in and out of the stock as needed. Of course, you need to know how to read the tea leaves, but that problem is true regardless of the timeframe.
So in conclusion, I looked at the chart and thought, the stock has doubled in 10 days and the volume says it should burn out soon, so what are the risk/rewards the day they report?
One way or another, CSIQ and the red rail need to catch up with each other. Either it will stall here and wait for it. Or it will go down to greet it. Option 3 (it will wait for it at a higher level) seems unlikely to me, but it could happen.
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