Thursday, January 3, 2008

Bearish Start

The overall action in the market was bearish today. At one point the DOW was up nearly 100 points, but could not close strong. It looks like the trade is to sell into strength.

Once again the solar sector continued to move higher: AKNS, CSIQ, SOLF, ESLR, HOKU all closed significantly higher. However FSLR, the bellwether, closed down. To me this could signal a top, the sector seems to be out of breath. So today, before the close, I added a few more shorts in the sector.

Agriculture stocks also worked today, thanks to the beautiful numbers from MON, and I missed the whole run. I sold MON right before earnings in fear the stock would sell off with a bad report. Most of my bad trades in 2007 were holds into earnings, so in 2008 I plan to refrain from playing the earnings game, but man I missed a huge run!

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