Chart of the Day - Wednesday, May 22, 2024

🏆 Today’s Chart of the Day was shared by Justin Spittler (@JSpitTrades).

• Solar stocks have been notoriously weak in recent years. However, they woke up today with the Solar ETF ($TAN) gaining +9%.

• The largest solar stock, First Solar Inc. ($FSLR) surged +18.7% today, closing at a 16-year high.

• It’s still down -19% from record highs; however, it’s recovering from a -96% drawdown, and this is the first time it’s been less than -20% since the peak in 2008.

The takeaway: The Solar ETF ($TAN) outperformed by a wide margin today after its largest component  ($FSLR) surged +18.7%. Solar hasn’t participated in this bull market at all, but this unloved group could catch a bid in the near term.