The solar sector has seen a multi-day run up on fears that nuclear energy is no longer a safe alternative energy source. I feel these solar stocks have gone a long way too fast and am looking to fade this move on strength. I began shorting Trina Solar Limited (TSL), First Solar, Inc. (FSLR), and Yingli Green Energy Hold. Co. Ltd. (YGE) today and will continue to short many of these solar names on bounces.
From a technical standpoint these stocks saw a deal of selling pressure on a day when the US and world markets were gapped up. I will be watching the hourly timeframe for any sort of rounding pattern. LDK Solar Co., Ltd. (LDK) released earnings after the close today and put up some great numbers: Q4 $1.09 v $.92e and R$920.9M v $877Me. The market has been fading the big earnings gap ups in this sector, so tomorrow might have some good opportunity on the short side for these extended names.
*DISCLOSURE: Long NVLS, GLD, AMRN; Short YGE, PCLN, FSLR, APKT, TSL
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