Monday, May 19, 2008

Pre-inaguration & LDK

Tomorrow Ma will become the next president of Taiwan. So far my trade on EWT has faired as I expected, again making it back to it's 6 month high of around 17.20. Depending on how it moves tomorrow, I may actually just sell it tomorrow. Reason being that Ma coming into office will surely be a catalyst for the market, but I believe the stock will pullback once again. Maybe not back to the 15s, but I could probably get a better price than what I entered at, being $16.31.

The real move up will happen when confirmation of cross-strait flights happen, which I have already stated that I don't believe will be as soon as many have hoped (July).

Moving on to LDK. I have a significant stake in LDK right now, and it tested it's resistance (200dma) of $40 and change today. It reached into the upper 42s but pulled back towards the close and finished the day at exactly $40.00. The next few days will be a good indicator of where LDK goes from here. A close above $40 tomorrow or over the next couple days would be extremely bullish. There's a number a good catalysts that could propel LDK back to the 50s with numerous solars reporting earnings over the next couple days. On the other hand, if LDK fails to take $40, looks like it will head back down to the 35s.

It really looks like a new solar "bubble" is building now. After the first bubble popped shortly after the turn of the new year, this new "bubble" seems to have started building in March and many of them have just begun to pick up steam this past week.

On watch: SOLF (earnings on Wednesday pre-market)

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