News & Press

IN THE MEDIA Featured Image

Solar ETF sees best day since June, but one trader says it needs to break a key level to keep rallying

Published 10-28-2021

Share

Lido Advisors Chief Market Strategist Gina Sanchez appeared on CNBC’s Trading Nation to discuss solar ETFs.


One level will make or break the recent rally in some solar stocks, according to Miller Tabak chief market strategist Matt Maley.

The Invesco Solar ETF (TAN) has climbed nearly 12% since Monday and is on pace for its best week since March, as spiking oil prices draw investors back to alternative energy trades. Tuesday was its best day since June, with the ETF notching a 5.5% gain.

But Maley said Tuesday on CNBC’s “Trading Nation” that the ETF needs to break above its 200-day moving average of around $89.47 to continue its comeback. He also noted that TAN has held a key support level around $77 per share.

“It’s always great when you get a nice support level that holds several times, follow that with a higher high above that 200-day moving average,” Maley said. “That’ll give it the kind of upside momentum that hopefully will help it play catch-up a little bit with the rest of the energy sector.”

The ETF rose slightly Wednesday to about $86.60 per share.

Though the broader energy sector has been declining for the better part of a decade while solar stocks gained ground, that trend has has flipped in 2021, with energy up nearly 50% and TAN down about 15%.

To be sure, Chantico Global founder and CEO Gina Sanchez doesn’t think that trend will last.

“The trade here is a short-term trade,” Sanchez, also chief market strategist at Lido Advisors, said in the same interview Tuesday.

She pointed to oil and gas giants’ yearslong struggles to turn profits in the face of technological advancements and the rising interest in renewable energy stocks and their growth prospects.

“We have some short-term interruptions in oil prices and gas prices that have to do with supply, but that are not necessarily long-term driving factors, whereas the long-term story for renewables and the energy transition broadly is still there and I think investors should use this dip to continue to play that,” Sanchez said.

Lido Advisors, LLC is an investment advisor registered with the Securities & Exchange Commission. SEC registration does not denote competence, ability, or expertise.  As an SEC-registered advisor, we are required to publicly file certain information with the SEC as well as furnish or provide you with the opportunity to obtain information about our principals, employees, products, services, and fee schedules.  Please review our Form ADV, which provides this information, at adviserinfo.sec.gov, call us at (310) 278-8232, or mail us at 1875 Century Park East, Suite 950, Los Angeles, CA 90067 for a copy of our Form ADV.

The future is uncertain and cannot be predicted.  Past performance is not indicative of future performance. These materials are provided for informational and illustrative purposes only and should not be relied upon as the basis of an investment decision. You should not construe this as investment advice or an offer to buy or sell securities.  All content herein has been obtained from sources deemed to be reliable, but is subject to unintentional errors, omissions and changes without notice, and is not warranted as to its accuracy or completeness. You should not rely on the information contained herein, and should rely solely on, and carefully read, the appropriate offering and related subscription materials relating to any specific investment before making a decision to invest.

Not all investments are suitable for all clients. Investing carries a risk of loss, including the complete loss of principal. Different types of investments involve varying degrees of risk and there can be no assurance that any specific investment will be profitable or suitable for your financial situation or risk tolerance.  Any references to projected or future expected returns or risk are not guarantees, promises, or assurances that these outcomes will be achieved.  Before investing, you should seek financial advice regarding the appropriateness and suitability of the contemplated investment as not all investments are suitable for all investors.

We do not provide legal or tax advice.  Any investment has tax and legal consequences.  You should consult with a licensed professional prior to making any investment.