I will be watching for further weakness in solar names. Many are near breakdown levels, and should be shorted in a weak market. Here are my favorites:
Gio’s short in Yingli Green Energy Hold. Co. Ltd. (ADR) [[YGE]] looks awesome, a break below the 200 day would be extremely bearish:
First Solar, Inc. [[FSLR]] is dying a slow death:
Canadian Solar Inc. [[CSIQ]] Watch for a move below the 100 day moving average:
LDK Solar Co., Ltd. [[LDK]] is going lower:
I got into STP as part of my 2010 thesis – and I waited till it was 15-20% off its highs, and I am still down 10% or so. Solar is suffering mainly due to Germany’s announcement that they will be cutting their feed-in tarif by 15%. Companies like STP rely on Germany to be profitable. STP expects that their PV sales in China will not be profitable, just to be able to get a gain there.
The whole sector is taking a beating, but like most things in the market, it seems too oversold to short now.