Solar energy also appears “toppy.” Admittedly, I never went near the industry. Nevertheless, if I were sitting on a tax loss carryover — and even if I weren’t — I might lock in my remarkable year-to-date profits in a fund like Guggenheim Solar (TAN). The near-term downtrend is evidence enough that I might want to take a break and revisit my premise.
If TAN makes it through the current bout of profit-taking as well as recovers its 50-day, I might investigate Market Vectors Solar (KWT) or another alternative energy fund like PowerShares Wilderhill Clean Energy (PBW). If so desired, I could buy back in within 30 days. Or, after a wash sale period, I could return to TAN.
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