Long Power-One (PWER) & Position Update in BAC
I jumped into Power-One (PWER) this morning at $5.05. I've placed my stop-loss at $4.84 as you can see on the chart below. This is one of those high-beta stocks and so there is some additional risk involved to holding these kinds of plays overnight as I plan to do. I've watched this particular stock for a few days now, and a number of traders that I trade with have gotten in it as well.
I think the inverse head and shoulders and breakout just above its neckline is providing a great opportunity to the long side, but I don't see this turning into a multi-week play. I see this being no more than 2-3 days max. Outside of that, I don't like the time/risk factor.
On another note, I stopped out of my short (i.e. "I covered") in Bank-of-America at $7.37 from $7.14 for a -3.2% loss.
Here's the POWER trade setup.