This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

3 Key Solar Stock Trading Triggers

Solar stock, green energy story updated for Credit Suisse market analysis)

NEW YORK ( TheStreet) -- There is a stark divide between short-term and long-term solar stocks trading triggers right now, as stark as it has been in recent memory. The long-term, sentiment-driven trade is leading solar stocks higher, while uncertainty regarding Italian solar policy changes and first quarter weakness could serve as negative catalysts in the near-term for the solar sector.

On Wednesday, solar stocks were rising again, with China's Trina Solar (TSL - Get Report) rising 4%, to within reach of a share price it hasn't attained since January.

A Reuters report citing anonymous sources in China indicated that China may double its solar installation goal in its new five-year plan to 10 gigawatts, as a result of the Japanese nuclear crisis and a reining in of China's nuclear ambitions. The report was just the latest after effect from the Japanese nuclear crisis driving a bullish long-term trade on solar stocks. On Monday, the results from the German elections served as another rally maker for solar stocks related to anti-nuclear sentiment the largest solar market in the world.

With the Wednesday trading action, investors can add to the sentiment-driven trade, with President Obama once again making a major energy policy speech voicing support for renewables and the goal of one-third less reliance on foreign oil within a decade. A foundation underneath all of the exogenous events related to global energy policy are two long-time bullish trading triggers for solar: oil prices above $100 and the euro, even amid continuing debt woes in the EU, holding above $1.40.

Most of the solar stocks were higher, too, with SunPower's (SPWRA) 2% gain the most prominent among U.S. solar stocks. SunPower would also gain on any expectations that Italy will grandfather existing projects from new lower feed-in tariff rates, as it has a slew of projects in Italy slated for September 2011. The recently unofficial commentary from Italy has focused in part on assuring the solar market that current projects will be insulated from 2011 FIT changes.

The exception to the solar rally rule was First Solar (FSLR - Get Report), which received a negative headline late on Tuesday when Securities and Exchange Commission filings revealed that former CEO Michael Ahearn has again significantly reduced his stake in the solar company, a filing highlighted in a Wall Street Journal report insinuating that the former First Solar executive's outlook on solar energy may have "dimmed." Ahearn cut his stake in First Solar almost in half over the past month. Ahearn, who still serves as non-executive chairman of the First Solar board of directors, sold 800,000 shares valued at $118.9 million in the past month through March 25.

Solar Investor: Test Your Solar IQ
Test Your Solar IQ
In any event, let's take a look at some of the current trading triggers in solar...

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
LDK $0.00 0.00%
STP $0.53 0.00%
HSOL $1.18 2.61%
FSLR $59.74 0.00%
SOL $1.33 0.00%


DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs