DQ Rev Shark buying DQ off LDK... Nibbling at China
By Rev Shark
RealMoney.com Contributor
11/9/2010 10:15 AM EST
The opening strength has been hit with some profit-taking, but so far the dip-buyers are providing some support and holding us around flat. Breadth is slightly negative and once again the precious-metals plays are leading the charge. The dollar is weak, and that is helping oil, coal, steel and other commodity plays. Retail and banks lag, which isn't a particularly good sign.
I continue to like the China plays and am looking at some of the solar names after a good report from LDK Solar (LDK - commentary - Trade Now). Daqo New Energy (DQ - commentary - Trade Now), which is similar to MEMC Electronic Materials (WFR - commentary - Trade Now), makes polysilicon for use in photovoltaic products. It had an IPO at $10 and is close to breaking to a new highs. It reports earnings next week. Origin Agritech (SEED - commentary - Trade Now), a China agriculture play, is breaking out of a multiple-top pattern on good early volume and I'm nibbling at that.
Long DQ and SEED but positions can change at any time.
