Time to Get some TAN? 05/17/13

Last week I traveled on business to Wisconsin, then Florida and Detroit before heading back home. I had two prototype runs happening in Florida. The first was considerably tough and is an innovation project I am working on with a major health care equipment manufacturer. After a successful end to the trial and on the way to the next one, I had a very nice dinner quietly by myself. After dinner I wanted a view of the sea. I hit it at a perfect time. The sun was setting. The beach had a few people there, all who came out to see the sunset. When was the last time I took time to see a sunset? Probably never. It was beautiful. The sun slowly dropped below the horizon. There were people sitting on chairs in the sand, enjoying the view. When the sun disappeared, everyone broke out into an impromptu clapping….It was wonderful. 

And what does any of this have to do with trading and investing? Is this the perfect time to get some TAN? TAN is a solar ETF (Exchange Traded Fund) consisting of stocks like FSLR (First Solar). If we look at the chart below, we can see the 50 day exp moving average (red line) slowly coming up to cross the 200 day exp moving average (the black line). That is a good sign. Also I see new higher highs being made after a long decline and consolidation. I purchased a position at the last minor buy signal.

This particular system that I am using has a major (bigger arrow) signal and also a minor (smaller arrow) signal. One safe way to trade it is take only positions when the major signal is up and also there is a minor buy signal. All the signals will not yield positive results; but the overall results are nicely positive if you just take buy signals in the direction of the trend. Time to get a TAN.