"The way to win in solar is to invest in the industry leaders and SunTech Power Holdings Ltd. (NYSE: STP) is a big as they come," says growth expert Toby Smith in his ChangeWave Investing.

"China will surpass the US as the world's largest market for wind turbines -- after doubling wind power capacity in each of the last four years.

"Chinese government mandates for cleaner energy are a big factor driving the blossoming wind and solar projects, but other forces are at work, too. Chinese power companies are loaded with cash and state-owned banks are eager to lend them more money.

Today's markets were under pressure most of the day after weekly jobless claims remained higher than estimates and after wholesale inflation rose more than expected. Earnings disappointments also added some pressure, yet oil rose sharply today with futures up over 10% at $38.60 late in the day after oil inventory levels were reported. Here are today's unofficial closing bell levels:

Dow 7,465.79 -89.84 (-1.19%)
S&P 500 778.93 -9.49 (-1.20%)
Nasdaq 1,442.82 -25.15 (-1.71%)

10YR T-NOTE
Top Analyst Upgrades
Top Analyst Downgrades

President-elect Barack Obama has often repeated his stance on alternative energy. He plans to spend $150 billion over 10 years on alternative energy, not only as part of his energy independence plan, but also in order to help clean the environment, and perhaps most important of all, to create 5 million new jobs.

With Obama winning in the polls, it is no wonder that on Tuesday solar stock prices soared: SunPower Corporation (NASDAQ: SPWRA) finished the day up 14.6%, Suntech Power (NYSE: STP) also closed 13.5% higher, Evergreen Solar (NASDAQ: ESLR) closed 12.8% higher, Canadian Solar (NASDAQ: CSIQ) was up 14.7% while Trina Solar (NYSE: TSL) gained 9.1%, First Solar (NASDAQ: FSLR) 9.6% and LDK Solar (NYSE: LDK) 4.8%. In fact, over the past week, these solar stocks added about 50% to their value: ESLR +104%, FSLR +55%, STP +53%, SPWRA +51%, LDK +48%, CSIQ +45% and TSL +41%. [Solar stocks are down this morning, seems to me a "sell on the news" decline.]

With these kind of gains recently you might think you're too late, but solar stocks have actually been beaten mercilessly in the past year. While the S&P 500 declined some 31% year-to-date and the Nasdaq declined 33%, solar stocks plunged even worse: STP -75%, TSL -73%, ESLR -69%, SPWRA -61%, CSIQ -56%, LDK -50% and FSLR -34%.

Congress passed a bill that approved about $18 billion of renewable-energy tax credits after repeated failed attempts to do so this year, and now there will be an administration that -- if it sticks to its claims -- will be more supportive of alternative energy. The only question investors should ask, so which do I pick?

"For those who want to 'go green' there are new opportunities to tap the environmental trend by adding cutting edge, alternative energy ETFs to your portfolio," says Doug Fabian, editor of Successful Investing.

"ETF providers are starting to latch onto the green theme. Two fund families, PowerShares and Market Vectors, have created their own classes of clean energy ETFs. A pair of ETFs has been launched in the narrow but potentially profitable niche of solar energy.

"The Claymore/MAC Global Solar Energy Index ETF (NYSE: TAN) is designed to track 25 companies in the solar power industry. Sectors included in the ETF are equipment producers, companies that concentrate on selling electricity, and suppliers of materials or services, installation, integration or finance. TAN currently invests in companies such as MEMC Electronic Materials, Suntech Power Holdings, and LDK Solar Co. Ltd.

"Van Eck Global launched the Solar Energy ETF (ASE: KWT). That solar energy ETF seeks to replicate the price and yield performance of the Ardour Solar Energy Index, which includes companies that generate at least 66% of their revenues from solar energy. The four top holdings are First Solar, Germany's Q-Cells and Solarworld AG, and Norway's Renewable Energy.

LDK Solar Co. (NYSE: LDK) is one strange solar stock. Yesterday, on a day when other solar companies like Solarfun Power Holdings (NASDAQ: SOLF), Canadian Solar Inc (NASDAQ: CSIQ), First Solar Inc (NASDAQ: FSLR) and JA Solar Holdings (NASDAQ: JASO) were all strong and despite earnings coming in at the high end of expectations and guidance solidly ahead of estimates, their stock was down. Not only was it down, but it also tried rebounding, only to fail. Not good at all for the bull case.

Experience has taught me to respect the price action the day after earnings. So when I see LDK trying to break out of a now 5-month old range, pretty much between $30 and $40 -- yes it was up to $50 in January and $20 in March, but those are outliers -- this is a very bearish sign. It's so bearish that I suspect that unless solar plays really heat up again, this stock will need many more weeks or months to break $40, and even then, it's got a ton of resistance all over the place due to bitter buyers in at much higher prices who will be looking to cut their losses.