China Solars May Become Cute Things Again

It has been quite a while since Chinese solar stocks staged sustained bull runs--Years, in fact. 

Nonetheless, the solar sector at-large has mostly been on the comeback trail since mid-June. And with the domestic First Solar's earnings approaching on Thursday, we have an excellent litmus test at our disposal.

In the meantime, the likes of Ja Solar, below on the daily timeframe, illustrate the thesis that a fair amount of China solars are firming up nicely. Note how price staged a sharp rally around Labor Day, pulled back, but its now tightening back up and threatening a bull flag breakout here. Similar comments apply to the likes of JKS, though I favor JASO's setup. 

JASO has earnings in the middle of November. And it may simply trade in its own world regardless of what FSLR does later this week.

But the larger point is that the solar sector is flexing, with TAN, the ETF, printing multi-quarter highs yesterday. 

So while the stodgy Dow names are understanding the focus of attention this morning (CAT MCD, etc.), the solar action may be a bit under-watched here given how many prior bulls have eschewed trading the sector altogether after years of getting burned.