BALTIMORE (Stockpickr) -- Solar stocks are starting to heat up, and investors need to pay attention because there could be some big money to be made in these stocks in 2011.Since I am a dedicated trend trader, I am always looking for sectors and stocks that are starting to trend in a clear direction where I think the potential for profits are high, and I'm seeing some very bullish signs in the solar sector. One of the main reasons that the solar sector is starting to heat up is due to rising oil prices. The recent geopolitical events in Egypt are helping to put a floor under oil prices, but oil was already trending higher before the problems broke out in the Middle East. Higher oil prices tend to make traders run into the solar stocks. They're in many ways a great hedge against higher energy costs. The thinking here is that companies will start to look more seriously at solar solutions once oil starts to spike higher. That's a very reasonable assumption, so solar companies have a higher likelihood of seeing new orders whenever oil prices are getting out of control to the upside. Related: 3 Earnings Short-Squeeze Stocks To demonstrate how strong crude oil is, just take a look at a chart for the black commodity. Since September 2010, light sweet crude oil has soared from $72 a barrel to $93 a barrel. The current price of crude is hovering around $88 a barrel. What market players should watch for now is a breakout if crude can manage to get above some past overhead resistance at $93 a barrel. If crude gets above that resistance area, then I expect the next leg of the bull market for oil to begin. This could mean that oil is going to easily push well above $100 a barrel. Oil above $100 a barrel will be a boon for the solar stocks. The solar names are already starting to take off, so any move above $100 will provide the next catalyst to take this sector higher. Higher oil prices aren't the only thing that's working in the favor of solar stocks. The German government could also be close to providing some much needed certainty for the entire sector.
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