Stock Picks For Thursday

It’s hard to say but the current reality still telling us to be cautious and be away from this sector. The current financial problem may spread into the European and Asia financial system sooner than later. This is an issue extremely complex to understand, but very likely to happen, especially when there are banks that have typically assets with long maturities and short-term liabilities and therefore, even healthy banks may face problems in current conditions. In addition, banks in Europe, after many years of a climate of investment too optimistic, took to their balance sheets, toxic assets and not only assets that originate in the U.S. The risk of a potential collapse of banks in Europe is real, and this scenario should not be put aside. There is a risk and that risk under current conditions, is high.

Please be aware of this fact, don’t look only for US as the problem of the globe, but more problems may appear in Europe and Asia sooner, it will be a matter of time. The global economy has worsen considerably, and with current rates in Europe the recession is spreading in almost all countries. If we look closely for the macro economical indicators of Spain, Italy, France and German, we’ll see that most of them are showing clear signs of a strong retraction, what this mean ? Deep problems ahead. I’m quite hesitant about Europe, which in my opinion is stifling domestic consumption and will further degrade even more other companies that have Europe as the first destination of its products.

As usual, here are more trade Ideas for Thursday.

Chart courtesy of stockcharts ( click to enlarge )

First Solar (FSLR) - Since the stock is still on a clear down trend with MACD below 0, there is no reason for the long player to buy the stock. The stock has strong resistance around $200. If the stock crosses this level and sustains above it, then it might see some buying interest. So for now it is better to wait and see what happen for the next few days before making any decision.

Chart courtesy of stockcharts ( click to enlarge )

SolarFun Power (SOLF) - The stock has a strong resistance at $12. If the stock crosses this level, then it might go to $12.84. Nearest support is at $9.60. If the stock declines below these levels, then it might witness weakness. The technical chart is showing possible buying opportunity as K line is about to cross on top over D line, wait for the line to be broken before buying the stock.

Disclaimer : Trading stocks involves risk, this information should not be viewed as trading recommendations.The charts provided here are not meant for investment purposes and only serve as technical examples.

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