There has been a fundamental shift in the solar industry. Panels are cheap enough to where they can be financed, and the cost savings from power can take care of the monthly payments.
And that narrative is probably right in the long term, and it's a good thing.
Now that we've got that out of the way, let's talk about how these names are due for a rug pull.
Starting with TAN, the solar ETF I've traded for over a decade now.
This is a 15 year weekly chart of TAN. The lower indicator shows the distance between the price of the market compared to its 50 week moving average.
TAN is 85% above its 50 week-- something that has never happened before. It's statistically stretched.
The wild thing is-- this is not a single stock but an entire basket of stocks! It does not happen very often.
We can also look at the number of daysTAN has been above its Bollinger Band:
6 days above its upper Bollinger band. Hasn't happened before.
This top call is not a long term call, I just expect a rug pull here before October options expiration.
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