Sino-Forest (TRE.TO) - Timber....... Trading Halted

What makes a stock fall 20% in a day resulting in halted trading?  --> This report by Muddy Waters Research

Looking at the front page of the Muddy Waters Research a proverb is quoted: "Muddy waters make it easy to catch fish".  The intro goes on to explain the mandate of the the company: Expose "sub-par" companies and illuminate "well-run and well-positioned" companies.  It appears there is a focus on Chinese companies.

The Muddy Waters report makes very strong allegations.  The first bullet point on the report says it all:
"Like Madoff, TRE is one of the rare frauds that is committed by an established institution."
The stock which traded north of $25 on March 31st 2011, has now come down to below $15.  Muddy Waters has a valuation of sub $1 on this stock. 

Muddy Waters has also just release a 34.1MB zip file with data to back up there claim.  This can be download from their link: here

News links below:
Sino-Forest shares plunge halt trading - BNN
Sino Forest plunges as short seller targets stock - Bloomberg
Sino Forest Shares Plunge 21%

TRE.TO Sino-Forest and JASO: JA Solar, profit targets

Rarely fib levels through time work in my opinion however, this move in very interesting.  The impulse wave from July 2010 to Dec 2010 encompassed 2 time fib levels, the correction was exactly within the 3rd time fib level.  If this is true, then we could conclude that an impulse phase has just begun. 

Another interesting fib relation is the fib fan.  Connecting the highs provides the baseline and the fan draws straight lines that are spaced using fib %.  The bottom two lines provided support for the pull backs during the correction phase.

Baring any full blown collapse of the equity market, I would expect a move past the 24.00 level.  Currently holding 23 strike price April call options so I will look to take profits when the 24.00 level is breached hopefully some time this week.

The support JASO is currently hitting dates back to the first half of 2010.   After 5 months of correction it appears that solar plays might be back in impulse mode.  I would consider a serious position if the 200 MA and 50 Ma get reclaimed within the next week or two.

Potential déjà vu, which would indicate that the buyers in mid March are back buying at the same level as they were.   Tomorrows volume will confirm that there are buyers willing to strongly purchase JASO at the 6.52.