As I wrote this weekend I planned to begin cutting back on some of the solar exposure as I have a heavy overweight in these names (this does not mean they cannot run much higher, but I bought quite low and prudent to take some off the table) and I'm also taking some profits in other names - aside from the solar stocks, these are not major sells, just $4-$8K. The solar stocks are about $15-$20K. Simply the other side of my layer in, layer out strategy - these stocks have had very large moves in 3 days... if it is just the beginning of a larger move, that is fine but I will treat all rallies with suspicion until we move into a true bull market. I am more than willing to give up "lost opportunities (more upside) in this type of market while locking in gains.
- Tech names: Baidu.com (BIDU), Apple (AAPL)
- Coal names: Peabody Energy (BTU), Consol Energy (CNX), Arch Coal (ACI), Massey Energy (MEE) - the latter name is up another 10% on top of Friday's 20% gain! wow.
- Solar names: Trina Solar (TSL), LDK Solar (LDK)
I added quite a lot of
Foster Wheeler (FWLT) in the $64s as it went into a similar position many names exhibited last week - a breakout above major moving averages.... barely. It will be a candidate to be cut back if it breaks back down, but it could be at the beginning of a nice move. Still among my favorites fundamentally and finally the chart is agreeing.
EDIT 2PM: I reversed the FWLT trade and am sitting watching now. If the stock makes a meaningful move back above $64.50 or so I'll get constructive again. But it broke back below $63 - this leads to a lot of volatility in trading around these moving averages.
I'm also beginning to re-expand my
Powershares DB Agriculture Fund (DBA) on the coming food emergencies. My only worry here is the hedge fund behavior which seems to dominate the commodity markets, but the chart is firming up here too. On the other hand, there is no earnings report for this ETF so we have no risk of 40% implosion :)
Long all names mentioned in fund; long LDK Solar, Trina Solar, Baidu.com in personal account
