.......Solar Stocks Appear To Be Breaking Out

Solar stocks (TAN is a solar ETF) appear to be breaking out, see http://stockcharts.com/charts/gallery.html?jaso, http://stockcharts.com/charts/gallery.html?tan, http://stockcharts.com/charts/gallery.html?tsl, http://stockcharts.com/charts/gallery.html?sol, http://stockcharts.com/charts/gallery.html?csiq, http://stockcharts.com/charts/gallery.html?wwat. Most or all of these gapped up today, so, they have bullish breakaway gaps.

Since SPX (S & P 500, http://stockcharts.com/charts/gallery.html?%24spx)
and the market in general is probably going to tank the next few weeks (SPX has been trending down since 12-17-08), one probably shouldn't chase the solar stocks now. Also, the potential breakout is early, and, could be a false start for the sector.

It makes a lot of sense to trade with the wind/market at your back. Trading in the same direction as the market almost always makes sense. This means that, for the next few weeks or so, short selling will probably be much more profitable than trading long.

Nothing discussed on this Blog is a recommendation, or, should be construed as investment advice.

.......http://www.JoeFRocks.com/