Monday, January 07, 2008

Sector Review

Broken Trends Everywhere, but there are still some good sectors to be in.

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Stopped out of HOKU @13 today for a loss of $0.5/share. Was up a dollar at one point, but I felt I needed to let the trade play itself out.

Solar sector is starting to look not so pretty.

Certainly none of them look tradeable since almost all of them put in wide ranging red candles today, with the only possible exception being ESLR. And even then, the rest of the solar sector would have to behave more rationally in order to even take a stab at ESLR. At the very least, the trendlines need to hold.

Shipping looks even worse than the solar sector:

At least with the solar stocks, the trendlines were still rising. That is not the case with the shipping stocks. They are breaking down for sure.

On the other hand, the Agribusiness sector looks healthy still:

Although many of the aggies stocks tagged their trendlines today just like in the solar sector, the big difference is in sentiment. Many of the solar stocks have doubled in 2months or less, whereas the aggies stocks are trending up more rationally, suggesting that they still have more room to run.
I actually tried to trade POT again today, but got stopped out for breakeven. Most likely a few more days of consolidation is required before a low risk entry point can be identified.

Gold sector is looking even better:

The whole gold sector should get a boost when the US Federal Reserve meets at the end of this month and lowers US Federal rates by at least 0.25 percent.

And the sleeper sector of the year:

My own custom Uranium Index is currently sitting at 16291. A close above 18000 confirms the double bottom, and that buyers are taking control, and also my signal to go long on some uranium stocks.

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