I've never liked the solars...
I've always thought they were way over-valued and that they should be down with the attendant housing market. I believe that, solar only represents about .01 of all the energy produced. Even with govt home-subsidies on solar, how many will want to invest more in a home that's dropping in value? I suppose it depends on your geographic location? In an area where I am from, most all the electricity is hydro-electric (Washington). It's not as heavily effected by raises in other energies. Seattle owns their own generating plants and water supply. And Grand Coulee's NE of me.
I wasn't particularly interested in solar, but did recognize (at the time) SOL was bouncing off a support area. But it was all pomo, and a precursor to further dumping of the stock (among others). I also had some JASO, but dumped it for a small profit early on.
There's no (big) money chasing the solars right now. Big-time, Cramer fav, FSLR dropped precipitously today almost -3%. Any pump will be lucky to last 2 sessions before it fills 100%. There's no one left to sucker. There's no financial warfare on solars, it's just D.O.A.
The market is still selling-off as the end of QE2 approaches. Solars are just among the weakest sectors. If I had had the margin, I'd have shorted SOL when it broke $9/sh for the last time.
I read today (per Mish Shedlock's site) that he believes the Repubs will relent and allow the debt-ceiling to rise by or before the August default. But the bond market will want to extract a higher cost (interest) to finance the continued folly, so $Ben would have to raise interest rates on his buds. Raising interest rates should put a damper on this "bull market", but it's hard to say.
I am still short oil (CNQ & USO) and recently, STX. June should still be a "down-month". I'll then, have to decide whether to dump my July puts before any pre-expiration squeeze. On CNQ & STX, I am out to Sept. Solar is still a falling knife as is STX. Oil's been a tougher nut, but I am hoping it falls off it's ledge this month.
AI
