Exponential vs. Incremental
Solar energy is at the tipping point of its exponential growth curve and the sector growth will surprise to the upside. Meanwhile the demand for mined energy (oil, coal, nuclear) is growing incrementally. In the race for energy market shares the demand for oil and coal will inevitably turn negative in the years to come. The solar singularity is knocking at the door with solar stocks vowed to crush coal and oil stocks in the medium and longer term as renewable energy is displacing fossil fuels for energy production and electric vehicles are displacing ICE vehicles for transportation.
Solar Sector vs. Oil
Solar Sector vs. Refiners
Solar Sector vs. Exxon Mobil
The Guggenheim Solar ETF (TAN) is compared with the Exxon Mobil stock (XOM).
The upside reversal of the TAN:XOM ratio should be as abrupt as and symmetrical to the sudden collapse from 10 years ago. If the break out above the 50 level does not happen this year it will most certainly do next year.
Solar Sector vs. Coal Sector
The Guggenheim Solar ETF (TAN) is compared with the Van Eck Coal ETF Exxon Mobil (XOM). The TAN:COAL ratio is expected to move briskly towards the upper boundary of the monthly wedge and following a minor consolidation phase break out above the 4.5 level, which should happen in 2019.
Solar Sector vs. Uranium and Nuclear Sector
The Guggenheim Solar ETF (TAN) is compared with the Van Eck Uranium and Nuclear Energy ETF. The TAN:NLR ratio is expected to swiftly reach the falling resistance line, retrace moderately before breaking above it within one year from now.