Sold Short WFR

Sold more WFR short at $59.35. More on this later tonight.

Sold Short WFR

Sold short shares of MEMC Electronic Materials Inc.(WFR) at $57.09. This company provides wafers to the semiconductor industry and polysilicon to the solar industry. Due to the current shortage of polysilicon and the rampant demand from the solar industry, shares of WFR have appreciated 60% since November of last year.

On April 30th however, RBC Capital Markets downgraded WFR to sector perform from outperform and cut the price target to $53 from $72. The analyst suggested that investors should book profits and reallocate capital else where. The stock responded by selling off on 17 million+ shares compared to the daily average of 5 million.

Technically, WFR created well established trendlines extending back into early November. After the analyst downgrade, shares gapped through the bottom trendline and preceded to move through the 50 DMA until support was found near $52.00/share. Imediately after we saw a weaker volume rally until resistance was met at the 50 DMA. Currently there is weak support at the $57.00 level, which if broken should lead to a testing of the $54.00 range.

My target is $54.20.

Update IMAX - Sold position

Closed my IMAX position at $5.42 for a 7.9% gain. Thank you Spider Man III!

Suncor Energy

I am adding Suncor Energy (SU) to my watch list. SU is a Canadian based integrated energy company that primarily produces and markets crude oil captured from oil sands located in northern Alberta. The company also owns and operates Canadian's largest ethanol facility as well as 71 megawatts of wind capacity with the 76 megawatt Ripley Wind Power Project scheduled for completion in late 2007.

Aside from strong fundamentals, the technicals of SU chart have become increasing enticing. I will reports more on this at a later time.

Update IMAX - Successful Breakout

As I mentioned before, IMAX had built support at the critical 200 DMA after successfully gapping through it on April 24, 2007. This effectively created support at a level of prior resistance. After demonstrating a failed breakout on meager volume yesterday, IMAX consolidated at the level of $5.15. For the remainder of the day, volume diminished and the stock showed strong support moving no lower than $5.13. Today the story is entirely different. In early trading, the stock gapped to yesterday’s high on strong volume successfully breaking that level of resistance. With 5 hours of trading left; 600,000 shares have already traded hands compared to the daily average of 488,824.

This movement should most likely be attributed to this weekend’s highly anticipated release of Spider Man III, which will be featured in IMAX theaters throughout the world. The film which is set for release in the United States tonight, has already trumped Asian records previously set by its prequels. It was even crowned the highest opening-day film ever in Hong Kong and South Korea. One can only speculate how the film will perform this weekend in the States.

Spider Man aside, there is still the overhanging uncertainty due to IMAX inability to file is 10-K 2006 annual report. The successful submission of this as well as a smooth resolution of previously announced accounting errors are essential for IMAX to continue its uptrend.

Update STKL Sell, IMAX Buy

Sold STKL for a .80% loss today. Rational is mostly explained in the chart. High volume sell-off prior to earnings don't typically sit well with me. Sunopta was creating higher highs and higher lows, as well as building support after each sequential move. Today's -7.57% move slashed through weak support at $12.70 and strong support at $12.50. This coupled with today's candle stick analysis and I decided to cut my losses and move on. Earnings are always a gamble and I refuse to play them if a company demonstrates weakness prior to the release.

I also bought IMAX Corp. (IMAX) for $5.02 prior to the close. The stock has been rallying higher due to contracts and record attendance during the debue of the movie 300. This weekend's release of Spider Man III should only strengthen the IMAX venue.

Technically the stock is sitting enjoying support at the 200 DMA as well as a firmly established lower trendline.

The risk here is with some financial irregularities which has forced the company to delay the filing of its annual report and thus possibly facing a Nasdaq delisting. Ceteris paribus, the company should file shortly and lift the vail of uncertainty.

Sold STKL

Sold STKL at $12.45. More on this later tonight.