No Sun In LDK

LDK 10.13.09Just when I thought it was o.k. to go out into the solar sector, I’m seeing weakness in many of the tickers out there.  I put out an alert on YGE 10/09 on a Bullish flag; however TAN is in a downward channel, FSLR in a Bearish expanding megaphone [although some will argue it could still possibly turn into a H&S bottom], SOLR in a triangle [bias unknown] but ALL seem to be losing the Accumulation/Distribution battle here.  It would seem the solar fad is fading, at least for now.  One exception seems to be CSIQ but it’s forming a triangle so it may correct as well.  [Maybe it outperformed b/c its a China mfgr].

 LDK broke down on October 1st.  Now it has scratched its way back up to test breakdown resistance.  Note the small candles – not much demand.  I like this area of retest and will be shorting it there for a low capital risk entry at the open tomorrow.  Target $6.50ish with a stop above $8.67  [Full disclosure:  existing long position in YGE]

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