No doubt today’s action was ugly if you were on the long side of the trade and taking a look at the Up & Down Movers at the left tells the story. That’s a might lengthy list of green stocks down with heavy volume today, but there were bright spots provided in some solar stocks.
Despite a day when the overall market was down 4% with heavy volume, eight solar stocks finished in the green today and it would have been ten if MEMC Electronic Materials (WFR) and First Solar (FSLR) could have held their late days surges.
Five in particular caught my attention by closing up with heavy volume, staging minor capitulation moves. These kinds of moves don’t necessarily mean a low has been hit, but that it is mighty close and at least stabilized. Here they are:
Trina Solar (TSL) actually capitulated yesterday, hitting $15 and rallying with conviction. It did the same off the lows today. The $15 level is a clear level of support and I’m looking to buy if it gets close to that level again. Get A FREE Trina Solar Trend Analysis Here
Sunpower (SPWRA) is a solar stock I had my eye on around $15, but avoided because of deterioration in the overall market as well as the price of crude. I thought I could pick it up lower, but sure didn’t think I could get in this low. Yesterday, the stock staged a very minor reversal, but couldn’t close in the green. Today, it made its move and closed up nearly 4% with heavy volume. I was able to begin scaling in with a small position under $11. I still think there is a decent chance of testing $10 before it’s all said and done and if that’s the case, I will add a little more. Get A FREE Sunpower Trend Analysis Here
Next is Canadian Solar (CSIQ) which has been destroyed following the guidance it gave in April indicating a big Forex hit. I don’t see as clear a support level in CSIQ as I do in TSL, so I’m being patient with this one. I want to see more high volume buying and low volume selling over the next few weeks, but today is a good start. Get A FREE Canadian Solar Trend Analysis Here
Suntech Power (STP) is a solar stock that was never able to rally like some of the other China solar names this year despite being a leader that only posted one losing quarter during the down turn (Q4 2008). It too staged a minor capitulation day today, but still looks a bit shaky. I’d want to see it get back above the $10 level with good volume first and hold there for awhile before jumping in. Get A FREE Suntech Power Trend Analysis Here
Finally, Yingli Green Energy (YGE) closed in the green as well today with good volume. With a reversal off the lows yesterday with heavy volume and another reversal today to close positive, it’s showing signs of stabilizing here, but I’d like to see it get above $10 and hold as well. Get A FREE Yingli Green Energy Trend Analysis Here
Disclaimer: I began slowly scaling into both Sunpower (SPWRA) and Yingli Green Energy (YGE). I regret not getting into a Trina Solar (TSL) position around the $15 level, but will look for a spot to add a small position there as well.