They are just taking the hammer to the solar names right now. As I wrote yesterday in my Canadian Solar (CSIQ) purchase (already down nearly 10% in a snap) the action in this group is so random so my new strategy is simply to devote a portion of the portfolio to "solar" and stuff multiple names inside and the market will decide which ones to favor. One of the other 2 names I was considering yesterday was LDK Solar (LDK) and with THAT name now down 8% I am adding this back to the portfolio at $32. 500 shares - creating a 1.35% stake. I last sold this name out at $36 (and missed the move immediately after, but now am buying 11% lower than where I sold) Folks, this is not a buy and hold market.
There is no chart support for LDK Solar other than a base it built in April - but it is not a stock near any moving averages and frankly this is the one group where buying stocks as they break above moving averages hasn't worked too well. You simply have to buy them when they look like they are all going to zero, knowing at some point in the future when karma is back in the group - they can skyrocket out of the blue. So once again - I am spreading my "bets" across this sector. Once Obama wins I believe this group will have a huge move in the fall.
I also added to Canadian Solar (down 10%) and Yingli Green Energy (YGE) "only" down 4% today but absolutely destroyed the past 3 weeks. Where these things bottom is unknoweable so we'll keep layering in as they plummet. Many are down 40%+ in the past month now. As a whole I have this 4 stock basket of solar now up to 5-6% of portfolio. This *is* one group that is making me get the puke factor...
As an aside there are some rumblings out of Spain about limitations about subsidies but we go through that dog and pony show every 5-6 weeks in this sector; if it is not one country it's another - at this point it's white noise and just a reason to cause a selloff. This type of action, again, is making me somewhat bullish because while the indexes are not being pummeled (today) - certain sectors are being shown the woodshed - all part of the cleansing process.
Long all names mentioned in fund; no personal position
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