Friday, October 9, 2020

Buying oil stocks, selling solar is seen as winning trade

Owning U.S. oil and gas producers and betting against solar companies looks like “the ultimate contrarian trade” to Jonathan Krinsky, Bay Crest Partners LLC’s chief market technician. Krinsky suggested the stock trade in a report Thursday, based on a comparison between the S&P 500 Energy Index and the MAC Global Solar Energy Index. The ratio between the industry gauges closed Wednesday at the lowest level since October 2008, according to data compiled by Bloomberg. Wednesday’s reading was 90% below a peak reached two years ago, and Krinsky wrote that he sees the potential for a “sharp snapback.

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