Aaron Chew, an analyst at Maxim Group, summed up the solar rally by noting that it's a sector that has always traded on sentiment. Macroeconomic sentiment has been high, solar stocks are high beta plays, and on Thursday, there was positive news specific to the sector to add to the recent bounce in solar stocks. Solar stocks have also been heavily shorted over the past few months.
"My take there is no need for an academic exercise trying to find a connection between incremental earnings confidence and market cap gains. It's more generally positive sentiment in solar with two of the largest players locking up 10%+ of their 2H11 volumes and FSLR landing $4.5 billion in loan guarantees. With the high short interest, there's no need to be precise about this ping-pong madness."
Yingli Green Energy shares were up by 7% on Thursday.
Trina Solar shares rose by 3.5%, which was a typical gain in the solar sector on Thursday.-- Written by Eric Rosenbaum from New York.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV