Wednesday, November 3, 2010

Back to Normal

A few minutes after the QE2 announcement when the market was still trying to come to grips with it, I had posted on twitter that it would be hilarious if after all the fuss and excitement, the market closed at breakeven. I would love to take credit for this excellent prediction but the fact is that it was said in jest. The market took a long time to find a direction after the announcement but interestingly, did not move 100 points in either direction after the announcement. So after a period of waiting and being cautious, I believe its time to jump back in with the longs. No need to fight the trend until it is broken.

I took a small position in SOLF after the announcement. Small because I wanted to give it enough room to run as there is always a possibility of getting chopped out admist all the volatility. Since the last couple of months, I have always had three solar stocks - LDK, JASO, SOLF - in my watchlist and they all performed well today. Seeing the intraday action, all three seem to be putting in a short term bottom, so watch out for them. They have been really hit badly in the last few days, so we could see a good bounce here.

Take care and good luck!

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