Bookkeeping: Cutting Solar Exposure

Very busy day today! I am cutting all 3 solar positions today but with a caveat - all 3 are under a resistance level; if the stocks show enough strength to break above this resistance, I'll buy back. They have been mostly range bound (strangely) with energy prices ballooning but there is a lot of strength today as the speculators run from 1 sector to another in their rotation. Looks like today is solar's turn.

Let me explain each one

Yingli Green Energy (YGE) is in the $22.70s. If it breaks north of $23 (200 day moving average) than it's in far better technical condition and I'd buy back my stake I sold... right now it's still range bound but at the top end of the range



Trina Solar (TSL) is in the $43.10s; it could still work all the way up to the $45s and it would hit resistance (200 day moving average) just under $46. North of there I would add more; this still remains my favorite "value" play in the sector. Chart below shows $42.60s for the 200 day but this disagrees with my normal charting program, hence the difference.



LDK Solar (LDK) is in the $36.10s; very nice chart over the past few days with no major resistance until $39 (200 day moving average). Chart below shows $37.20s but I am using $39 in my normal charting program.



So we have a similar set up in all 3 charts, just at different stages - YGE is the closest into turning into a buy over resistance. What I try to do on these set ups is lighten up the closer it gets to resistance (hence I cut YGE the sharpest today), and then reverse course 180 degrees if need be if the stock does not falter (which they usually do when they approach resistance from below), and in fact continue upward. So for example, I might be buying YGE back in a few hours if it breaks through that $23+ level. If they do falter, I'll buy back what I sold later at a lower price. Keep repeating this for a few years, and you too can have a mutual fund.

Again, this is a sector basket allocation for me, and before my sells this was a "5.8% solar stake"; it is now down to 3.5%.

While I am drinking Kool Aid in an overall market sense, I still am going to take profits when given to me, and lock into cash unless/until charts turn more positive.

Long all names mentioned in fund; none in personal account