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GarethSoloway
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Chief Market Strategist Gareth Soloway has been an avid swing and day trader since his days at Binghamton University where he studied Economics. After college, Gareth quickly excelled as a financial advisor, helping clients get their financial houses in order. While helping others gain financial... More
My company:
InTheMoneyStocks.com
My blog:
Pro Traders Rant & Rave Blog
  • Alternate Energy Plays On Fire: How To Trade Them Now 0 comments
    Mar 10, 2014 1:43 PM | about stocks: PLUG

    Stocks like Plug Power Inc (NASDAQ:PLUG), FuelCell Energy Inc (NASDAQ:FCEL) and Ballard Power Systems Inc. (NASDAQ:BLDP) continue to be on fire. PLUG is up another 32% today, trading at $10.94 +2.67 (32.29%). Just in the last two weeks, it is up almost 200%. When these stocks get this extended, I begin to salivate and look to short them. It is often a high risk trade so I short with options or lighter share size. PLUG has crossed the $10 even number level, this is a psychological level that will create sellers (once the short squeeze is over). In addition, the stock is now worth over $1 billion, another psychological selling level (once reality sets back in). I think it is also important to mention that the stock is in need of capital. This drastic price move will give them the ability to do a stock offering at a solid price. This stock offering will cause dilution to current shareholders and could be the catalyst for a pull back.

    In my opinion, the stock will fall in the coming weeks to $7.00 before finding support.

    Disclosure: I am short Plug Power Inc (NASDAQ:PLUG).

    Gareth Soloway
    InTheMoneyStocks.com

    Stocks: PLUG
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