If I had to pick the most heated groups of stocks over the past few years, I’d start with China… and then Solar.
Every cycle needs a comeback story, and solar might be writing one of the best right now.
After years of getting crushed and completely ignored, this group — left for dead by most investors — is finally waking up again.
These stocks haven’t participated in the bull market at all. They’ve been true laggards, stuck in a deep bear trend while everything else ripped higher.
But that’s changing fast.
With short interest across the space through the roof and sentiment completely washed out, these stocks might finally be catching a fresh breeze.
Check out this chart Steve highlighted exactly a year ago — it’s incredible how cleanly the pattern has played out since then.
During Trump’s first term, solar was one of the top-performing industry groups, soaring over 600%. Then they fell off a cliff under Biden — down about 75%.
Now the setup looks eerily familiar.
TAN’s already up more than 50% since Trump returned to office in January, and for the first time in years, the trend’s pointing higher.
This is less about politics itself and more about positioning, sentiment, and how money tends to rotate when market leadership shifts.
That shift in tone is now starting to show up in the charts too.
On a relative basis, the picture’s just as bullish.
After breaking down to new all-time lows versus the S&P 500, the ratio’s snapping back fast — reclaiming a key former support level and hinting at a major failed breakdown.
If that level holds — and we get follow-through — we may be looking at a major change in leadership.
Solar stocks are back on the leaderboard. Let’s see if they can keep shining this time.
Stay sharp,
Alfonso De Pablos, CMT
Director of Research, All Star Charts
The Secret Behind 22 Trades Up 10X+
Steve Strazza is going LIVE Monday, November 10 at 2 PM ET to reveal our new Volatility Squeeze Engine — the same tool that’s powered 22 trades up 10X+ this year.
