I highlighted a group of solar sister stocks on September 11, 2007 during a typical daily screen. Many analysts and stock bloggers, such as Madstocks, have been doing the same since this is the hot trending group. You have two choices: Join the party or watch it happen!

All seven solar stocks (SPWR, FDG, YGE, JASO, ANR, FSLR, LDK) have moved higher with my original Chinese solar buy, JASO, leading the charge over the longer term. JA Solar Holdings (JASO) peaked with a 90% gain in three months and is now up more than 85% since my June coverage.

More recently, First Solar Inc. (FSLR) has blasted higher, reaching new highs with a 26% gain over the past three weeks. I highlighted it on the 9/11 Daily Screen and had this to say:

FSLR – 100.42, the stock is consolidating after the super run from $20 to $119 over the past nine months. FSLR is related to LDK in this category.

LDK Solar Co. (LDK) had a peak gain of 40% during the month of September and has been making new highs since its debut for four consecutive months. Here’s what I had to say a few weeks back:

LDK – 58.13, the stock is past all ideal entry points but is one to keep any eye on based on the excellent up-trending strength. The ideal entry would be a pullback to the 50-d m.a. A shorter term entry could be on a slight pullback near $50. This is one to watch for a future $60-$100 run.

The group is moving higher and I am no longer an entry level buyer into these sister stocks. You could add shares on pullbacks but I won’t be joining. I own what I need to own and will only take profits when necessary. Ride the trend. If you missed it, wait for the next train to arrive.

I’ll update and cover the China trend tomorrow, along with a fresh daily screen!

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The four stocks highlighted today are all trading slightly above their 200-day moving average after making some type of a correction over the past couple of months. I call them late opportunities because they were correcting when the majority of the market leaders were making new highs. This type of action could allow us to label them as laggards but their overall weekly charts would suggest otherwise.

They have all managed to trade above their long term 200-d moving average while showing us a history of success. It may be my belief and your belief that the market is near a top but do we really know when the market will officially top and start to trend lower.

I don’t think so!

So, take the trades since they have ideal risk-to-reward setups. What is the worst that can happen? You sell for a small loss. Big deal because this has been one profitable year so take the trade! These stocks aren’t the market leaders but you may be able to squeeze some profits out of the current moving average setups. We’ll call them lazy summer buys.

AllianceBernstein (AB) was one of the more consistent performing stocks on the MSW Index prior to me shutting down the index in March. The stock was screened heavily last summer and I started coverage on the 29th of July, 2006 at $66.90. The stock gained as much as 40% while on the index but has recently traded slightly downward as it makes a correction towards the 200-d m.a. It tested the line last summer and that is when I saw an ideal buying opportunity so I am now looking for a similar situation. It held the long term moving average as support last week so I would not have a problem taking a position.

(AB) Potential Trade Set-up:
Ideal Entry: $84 to $86 (currently $90.14)
Risk is set at 1.0% maximum of total portfolio or $1,000 of $100k
Stop Loss is 9% or $82.03
Number of Shares: 123
Position Size is $11,112
Risk is $8.11
Target is $108
Risk-to-Reward is 2-to-1

***The ideal entry would be near $84 for a risk to reward of 7-to-1. The stop loss would be 3% or $81.48 with a stop of $2.52.

Rochester Medical (ROCM) has had one heck of a year as it blasted higher from $7.50 to as high as $29 in six months of time. Since the peak, the stock has corrected by 50% over the past two months and is now trading with a suspicious quietness above the 200-d moving average. Is there some type of news that will be released that will propel this stock higher? I don’t know but the trade setup is ideal so take it. Something may be going on behind the scenes so take the nice risk-to-reward setup.

(ROCM) Potential Trade Set-up:
Ideal Entry: $15 (currently $15.14)
Risk is set at 1.0% maximum of total portfolio or $1,000 of $100k
Stop Loss is 5% or $14.25
Number of Shares: 1,333
Position Size is $20,000
Risk is $0.75
Target is $21
Risk-to-Reward is 8-to-1

Click through to see the ideal trade setups for CHINA and GMKT:
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