Waiting Game

Today's action on (SOL) was a bit of a mixed message. It was up a little over a percent on poor volume, but it continued to hold the 10 wma which is positive. On the other hand, for the second time in a few days it seemed to find resistance at the 21 dma. Furthermore, the solar group in general had a big day with many of the stronger members posting gains of 5% or more, and in that regard (SOL) lagged.

The general market was quiet today and should remain that way in advance of the Fed's decision on short term interest rates, which will come Wednesday around 2pm EST.

I still think I'll have a fairly clear signal which way (SOL) wants to go this week. The 10 wma is rising to meet the 21 dma, which is falling. The stock is trading between the two, so something has to give. If (SOL) can catch a bid, break through $22 and hold it, I'll be confident it's back on track. I've moved my stops for my last two buys up to $20.20 - if the stock get's much below the $20.50 price that the secondary offer went at I think it's broken, for the time being at least.

-Geoff