Solar Stocks Rip Higher From Call Alert
There is a broad based squeeze going on in the Solar sector today. First Solar, Inc. (NASDAQ:FSLR) is jumping to $60.26, +6.49 (+12.07%). All other solar stocks are also seeing massive gains. Even Chinese players like Suntech Power Holdings Co., Ltd. (ADR) (NYSE:STP), LDK Solar Co., Ltd (ADR) (NYSE:LDK) and Trina Solar Limited (ADR) (NYSE:TSL) are all popping.
Last week I wrote an article discussing the likelihood of a solar bottom. This was on the basis of major levels hit and an overwhelming sense of negativity. Just last week, an analyst came out and said the solar stocks could go down another 40%. The day I wrote the article on the bottom on the solar stocks, FSLR hit a low of $52.32. This was a drop of 70% from the 2011 highs. Not only was the negativity overwhelming, but a smart trader also looks at the amount of shares already short. On FSLR, it was upwards of 20 million or 40% of the float. This was a squeeze in the making.