When 2013 started I said it would be the year of the samurai, as I antipicated Japan’s QE infinity program would depreciate the Yen and lift their stock market higher. I was long Toyota and Short Yen… both worked very well and quick… but I was too quick to sell them. Since I have missed most of the Japanese rally I would like to rename the year something else… and I think I may be going with solar.

As of now I am only long FSLR

…but I am thinking of throwing my logic and rational out the window and buying some riskier and yet-to-be profitable names like these…

This song is hot like solar and the sun…

Solar’s performance lately is astonishing…  I did predict back in December that the solar industry’s prospects looked pretty bright (click here), but  my expectations have been succeeded.

Let me introduce you to some notable players….

Solar city has been on an absolute tear… I’ve been watching the intraday action for awhile and it’s absurd. The stock trades is trading at a “modest” 20X sales, has no profits, but looks like its going to the moon on Elon Musk’s SpaceX rocket ship.

First Solar is the least-risky play in the space because they are profitable and best-in-class. I own and think its going to $60 on the back of short sellers.

Canadian Solar is back from the dead. Among all the risky plays… this on is my favorite.

Regardless of the fact equities are approaching fair value and have been inflated by Fed stimulus I still see the possibility of a higher prices in the near term. In general, America is underinvested in equities (see graph below) Source. While the market doubled under Obama Americans irrationally sold stocks. These individuals see the market rise to new highs and constantly think we are at a top and due for a correction. Unless everyone who doesn’t own stocks already is insane, or they will eventually figure out they can’t pick tops and miss out on equity returns.

Apple bounced (as I predicted on twitter) off of its $419 support level and may have put in a tradable bottom for anyone looking to start a position. The risk/reward ratio is quite attractive if AAPL could get back to $500 by year end.

Another interesting bounce I saw was in Cliffs Natural CLF. Although it ended in the red, there was a 5% reversal this morning. I am long a small position and think there is a chance this name gets squeezed to the moon with the abundance of short sellers inhabiting it.