It was a wild day on Wall Street as Solar stocks soared along with the price of crude oil.
On the technical breakout scene this afternoon was Solarfun Power Holdings Co. (SOLF) which rose $1.25, or 8.37%, to $16.19 on volume of 9.1 million shares, more than double the three month average daily volume of 4.37 million shares. Today’s move coincides with an across the board “green day” in solar power stocks led by First Solar, which rose 6.72% to $303.98 The bullish move could be attributed to a round of intense short covering Since the end of January there were about 11.3 million shares short, but that has moved up to 15.2 million as of the last reported settlement date of April 30 The shares represent a substantial portion of the 48.3 million shares outstanding and the publicly traded float of 43.5 million shares It’s an understatement to say that the short supply of shares has added to the volatility of this solar name and fueled the momentum trade. |
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