Here’s your trade on Enphase ($ENPH) – December 2, 2022

by DAN ENPH 
Let’s look at Enphase ( NASDAQ: ENPH ). Now, solar stock, this isn’t First Solar ( NASDAQ: FSLR ), but it ( NASDAQ: ENPH ) is starting to look like it may be the next First Solar ( NASDAQ: FSLR ).

The stock has been struggling to get and stay above 310.00 for a while. You can see how long it has been held here. It’s like there is a cap on top of it and every time the stock comes up there it bumps its head, and then that is all she wrote. But since the October low, which is like 6 weeks ago, the stock has been continuing just to bump up here.

I’m seeing this on a Friday when typically traders are kind of squaring their books and not doing a whole bunch. This thing ran up on really, really impressive volume, a lot heavier volume than usual, and it just blew right through this 320.00. And that, my friends, would put this stock at a new all-time high.

Do you know what rhymes with all-time high? Blue sky; what that means is, there are no clouds overhead. There is nobody, there are no sellers going, Crap, if I could just get my money back, then I would sell the stock.

There are only two dynamics in this stock that are going to control this stock. One, buying aggression. The other, when do I want to take profits? It is literally a profit-taking dynamic, verses, a buy it before it gets away from me, dynamic. And right now, I think that the one that wins the day, as far as being stronger, is the one that says, I have got to buy this stock before it gets away from me.

I don’t own as much of this stock, maybe as I could, but I’m managing my risk in my own ways. I have a pretty healthy position in this stock, and I don’t have my stop down here at 279.50. That is where we have it on our Active Trade Ideas List, which is also doing really well.

The point is though, on this one, I always give a loose stop saying, “Don’t have it any lower than “X”, fill in the blank. So I have this here, just below the 50-day moving average. I’m into this stock and I am not giving it as much room. The reason I am not giving it as much room is, that I have a bigger position and I care less about the percentage stop and more about the number of dollar bills that I will lose if the stock pulls back and stops me out.

Everything that I just told you I think is really important, so don’t just blow this off. In fact, you may just want to go back and listen to this again. You can put the video on fast speed, and listen to it three different times. You will hear me say the same thing each time but different things will resonate with you. That’s the way it is, repetition, “The Power of Threes”.

Anyway, this is my trade for you. I think that this stock goes higher. I think it goes a lot higher, after all, it’s a solar stock, right? All of those, the only thing they do is go up.

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