Schaeffer's Trading Floor Blog

Biggest Movers: Canadian Solar Inc., JA Solar Holdings Co., Ltd. (ADR), and MICROS Systems, Inc.

CSIQ, JASO, and MCRS are making big moves in Tuesday's trading

by 6/17/2014 1:35 PM
Stocks quoted in this article:

Heading into the final stretch of the session, three of the top market movers are alternative energy issues Canadian Solar Inc. (NASDAQ:CSIQ) and JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO), as well as hospitality software specialist MICROS Systems, Inc. (NASDAQ:MCRS). Here's a quick roundup of how this trio of names is performing on the charts so far.

Solar stocks are in rally mode today, after Yingli Green Energy Hold. Co. Ltd. (ADR) (NYSE:YGE) this morning reported a strong start to the current quarter. One beneficiary is CSIQ, which has tacked on 6% to trade at $27.52. Longer term, however, the shares have shed 38% since tagging a five-year peak of $44.50 in late February. In the options pits, Canadian Solar Inc. speculators have taken the glass-half-full approach, per the stock's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 9.10, which ranks at an annual high.

Another solar name enjoying a sector-wide halo lift today is JASO, which was last seen 8.1% higher at $11.10 -- bringing its year-to-date advance to 21%. In spite of this, sentiment remains tilted toward the bearish side. For starters, the stock's 50-day ISE/CBOE/PHLX put/call volume ratio of 3.04 ranks higher than all other readings taken in the past year. Echoing this, JASO's Schaeffer's put/call open interest ratio (SOIR) of 1.69 ranks just 2 percentage points from an annual peak, meaning short-term speculators have rarely been as put-heavy toward JA Solar Holdings Co., Ltd. (ADR) as they are now. Plus, short interest accounts for 15.3% of the equity's available float. From a contrarian perspective, an unwinding of this skepticism could help fuel JASO's fire going forward.

Finally, MCRS has surged 16.3% today to linger near $67.10 -- and earlier tagged a fresh record peak of $70.24 -- on reports that Oracle Corporation (NYSE:ORCL) could potentially purchase the company for $5 billion. This bullish gap may be enough to spark a short-covering rally on MICROS Systems, Inc., considering 11.2% of the stock's float is sold short. What's more, it would take nearly three weeks to cover all of these shorted shares, at the stock's average pace of trading. However, the equity's 50-day ISE/CBOE/PHLX call/put volume ratio of 1.42 ranks in the 72nd percentile of its annual range, suggesting short sellers may have been hedging with long calls ahead of today's pop.


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