With the miss at FSLR and the sheer dismantling of SUNE, I declare the sector to be dead, forgotten in the sands of Wall St. Many sectors before it have flourished and burned. This is no different. One might try to game the sector through thrifty trades. However, the fundamental reasons to be long the sector are now dead.
On the other hand, oil is north of $100 for quite some time now. There isn’t a Brent premium to discuss, rendering US refineries utterly un-investable. But the domestic producers are in the sweet spot, which is why I am holding CXO into earnings, slated for this evening (heavy Dracula accent).
Everything else is burning to hell. I haven’t even dared to open my profit and loss thingy, in an effort to spare myself the pain and agony of seeing it with my eyes. I’d prefer to imagine what the losses might be, then fantasize over hedonistic upside recoveries.
I know it sounds odd, but bonds are probably a good bet here. Based off seasonality, TLT has only traded down one time since being a publicly traded vehicle. The month of August is, by far, the best time to own government bonds.
People are scared. The summer is ending and the winter is coming.