Wednesday, January 11, 2012


I'll follow up more on how bizarre trading has been this week, but just a quick note that the small cap solar firms (that are going extinct) were up massively today while natural gas and NG producers were down.

Solar cannot compete with electricity from natural gas at these prices. Falling electricity cost (which is set at the margin by natural gas prices) is ultra bearish for PV solar demand.

The only logical explanation is that there is very large short interest in the solar companies because they are rightly perceived as failures. And today was a gigantic short squeeze.

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