Solar energy stocks and related exchange traded funds (ETFs) are basking in the glow of an alternative energy rally, as crude prices have crept upward.
Solar power may be looking at the sunny side of things as crude oil has gone past $71 per barrel, giving more cause to the case for solar energy. Claymore/MAC Global Solar Energy (TAN) is up 6.2%. Trang Ho for Yahoo reports that this is four times the usual volume, however, the 200 day-line is still trending downward.
Market Vectors Solar Energy (KWT) is up 4% on slightly higher trade as well. Some analysts warn that the shares have shot upward too intensely, and to wait until stabilization occurs. Be sure to have a trend following plan and mind the 200-day moving average when going into these ETFs.
Around $250 billion was spent for new power capacity in 2008 and for the first time, the majority of the money went toward clean energy, a report by the United Nations Environment Program has found. Renewable sources accounted for 56% of investment dollars globally, worth $140 billion, while investment in fossil fuel technologies was $110 billion
- Claymore/MAC Global Solar Energy (TAN): up 30% year-to-date
- Market Vectors Solar Energy ETF (KWT): up 22.5% year-to-date
For full disclosure, Tom Lydon’s clients own shares of TAN.
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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.