SunPower Corporation (NASDAQ:SPWR) reported earnings after the stock market closed today. The stock crashed almost 30% after-hours. The company reported a net loss of $0.22 per share on revenue of $401.8 million. This beat analysts expectations slighty. The reason for the massive after-hours collapse came in the form of a warning for the coming quarter and year. In addition, the company is laying off 15% of its work force and will take a $30-$45 million restructuring charge.

It stinks to be SunPower, no doubt about it. As a trader, I couldn't care less. Why? Because I was smart enough not to own it into earnings and this massive collapse gives me and other smart investors an opportunity to buy it tomorrow or in the next week. As soon as I saw the drop I began to scan the daily, weekly and monthly stock chart. I discovered a major level stretching back to 2010. This is where SunPower will hit major support and I will buy. The level is $9.50.

Jenny Rebekka