Looking at these two charts, it's hard to dispute that there's a relationship between the micro-trends of $FSLR and $SCTY. They're in the same sector, so similar macro-trends are visible; within that sector, they are competitors in several ways so if one goes up it makes sense that the other would go down on a micro level.
The yellow lines are the most recently established R1 and S1 levels of $FSLR if April is included up to today...I included them to show that this most recent peak didn't even reach it, so the unusual volume that drove the price up on its' most recent spike took it to territory where it doesn't really belong (low volume has been sustaining it if you follow the chart down).
Most analysts, most notably those at $GS are expecting a stronger earnings statement and guidance from $FSLR than from $SCTY. So not only is there a natural technical reason for $FSLR to go down, but there's also analyst sentiment reasons for Solar City to go up this coming week and FSLR to drop.
Long story short, I'm buying weekly SCTY calls and $FSLR puts.
The yellow lines are the most recently established R1 and S1 levels of $FSLR if April is included up to today...I included them to show that this most recent peak didn't even reach it, so the unusual volume that drove the price up on its' most recent spike took it to territory where it doesn't really belong (low volume has been sustaining it if you follow the chart down).
Most analysts, most notably those at $GS are expecting a stronger earnings statement and guidance from $FSLR than from $SCTY. So not only is there a natural technical reason for $FSLR to go down, but there's also analyst sentiment reasons for Solar City to go up this coming week and FSLR to drop.
Long story short, I'm buying weekly SCTY calls and $FSLR puts.