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Thursday, October 25, 2007

Rather be Safe Than Sorry: Closing Trina Solar (TSL)

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Trina Solar (TSL) is up a decent amount today based on the Suntech Power (STP) move. The stock behavior has been worrisome to me, as the rest of the solar sector (ex LDK Solar (LDK)) has been ramping this stock has been degrading. I sold 2/3 of my position October 18th and as the stock is up nearly 5% today, and hitting technical resistance of the 50 day moving average ($54) I am going to sell. Most stocks in this sector are well above all technical support, Trina has been below. Why 1 stock does not move with its peers makes me question things. At least with LDK Solar the issue is out in the open - but why is Trina Solar not reacting well? That makes me question what is going on behind the surface and what "someone" knows that I don't know. I definitely could be wrong on this move, as with any move, but I'd rather be safe than sorry and after I see the next earnings report I can make a better decision on the near term in this stock. I just get wary when there is such an outlier in a group of strong stocks. Both Suntech Power and Trina Solar were lagging 2 weeks ago - since then Suntech Power (even before today's massive move) was strengthening, making new highs, technically looking great. Trina Solar, on the other hand, was going in the exact opposite direction. So this is purely a technical move - again in the near term, technicals can be (not always) the small investors friend as it usually (not always) tells you ahead of time what some of the "big boys" know. So I am taking that tact, and if wrong it's ok - many fish in the sea going on sale lately.

Long Suntech Power, LDK Solar in fund; no personal positions


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