As oil continues to gush higher, hitting another new record Friday, more attention is being paid on trading floors around the country to alternative energy stocks -- particularly solar.
While many solar stocks saw sizable profit taking earlier this year, they’re back in a big way, Jon Najarian said on Thursday’s Closing Bell. Just check out Solarfun , which broke through its resistance level of $18.90 and rocketed up over 20% on Friday.
As far as Najarian is concerned, the solar names should continue to march higher so long as oil stays above $120. On the flip side, he’d expect “wholesale selling” of solar stocks if oil crashes comes back down to earth.
These are corollary positions to crude and will continue to be driven by the price of a barrel, the same way the airlines go down as oil goes higher. So remember that when you trade solar, you’re essentially trading the price of oil.
Najarian briefly touched on wind power, another rejuvenated sector of alternative energy that he thinks will also continue to see gains. American Superconductor is his favorite wind play.
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