Trina Solar (NYSE: TSL), a maker of solar photovoltaic products and a colleague of Suntech Power Holdings (NYSE: STP), issued second-quarter results on Monday after the market closed. According to Reuters, Trina Solar beat market expectations.

Revenues decreased over 26% year-over-year (according to the actual press release, revenues increased over 13% on a sequential basis). Net income was 71 cents per American depositary share (ADS). Analysts were betting on 37 cents per ADS being the likely profit figure.

Analyst upgrades:

• JP Morgan upgraded J.C. Penney (NYSE: JCP) to Neutral from Underweight based on lower input costs, stabilization in home, lower markdown dollars, and valuation.
• Oppenheimer upgraded Novellus (NASDAQ: NVLS) to Perform from Underperform as it believes Novellus' market share has stabilized and that the company is a potential acquisition target. The firm raised its price target to $20 from $9.
• Bernstein upgraded ConAgra (NYSE: CAG) to Market Perform from Underperform citing strength in grains and moderating input costs.
• ConocoPhillips (NYSE: COP) was raised to Buy from Neutral at Goldman.
• China Housing (NASDAQ: CHLN) was upgraded to Buy from Hold at Roth Capital.

Trina Solar (NYSE: TSL) is set to step into the earnings spotlight today, with Wall Street expecting a fourth-quarter loss of 4 cents per share. This past year hasn't been kind to TSL as far as earnings are concerned. In two of the three earnings reports thus far, TSL has missed the consensus estimate -- both times by a rather wide margin.

There is no doubt that solar firms have lost a bit of their sizzle, what with dropping crude prices and tightening pursestrings. Unfortunately for TSL, it has been caught up in the wave of downside pressure. Even if the firm bucks the recent trend and reports better-than-expected earnings, it may not rally much, thanks to a massive amount of overhead pressure. TSL's 10- and 20-week moving averages are in position to stop any rally attempt, a role that they have filled since the middle of 2008.

Today was nothing short of a wild trading day and despite the levels seen at the close it is still a toss up over whether the bulls or bears won today. Merrill Lynch has said that the commodities cycle may have peaked in the first half of this year. It noted that the S&P/GSCI commodity index was up roughly 41% during the first half of 2008, which is the largest gain since the index inception. This may have only been one factor, but oil fell as much as $9.00 per barrel in the biggest one-day dollar drop since 1991. We did even briefly see the VIX hit that magic 30.0 reading. Below are the unofficial closing bell levels:

DJIA 10,961.72 (-93.47)
S&P500 1214.96 (-13.34)
NASDAQ 2215.71 (+2.84)
10YR T-Note 3.844% (-0.036%)
52-WEEK LOWS
TOP ANALYST UPGRADES
TOP ANALYST DOWNGRADES

Genentech, Inc. (NYSE: DNA) rose today despite a weak earnings report and despite it saying it was going to act like an old industrial company with a share buyback plan. Shares were up over 5% at $79.37 in todays final minutes.

Trina Solar (NYSE: TSL) shares are falling this morning after the company reported a first-quarter profit of $12.9 million, or 51 cents per share. Despite beating analysts' estimates, TSL shares are dropping as investors seem to be looking at TSL's forecast for the coming quarter, when they expect operating margins to increase by as much as of 2%. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on TSL.

After hitting a one-year high of $73.06 in July, the stock hit a one-year low of $25.88 in March. This morning, TSL opened at $45.12. So far today the stock has hit a low of $44.67 and a high of $48.00. As of 12:05, TSL is trading at $45.65, down $3.98 (-8.0%). The chart for TSL looks bullish and steady up until today's drop.

For a bearish hedged play on this stock, I would consider a June bear-call credit spread above the $55 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 4.2% return in two weeks as long as TSL is below $55 at June expiration. Trina would have to rise by more than 20% before we would start to lose money. Learn more about this type of trade here.

TSL hasn't been above $55 since December and has shown resistance around $51 recently. This trade could be risky if the cost of oil (and alternative energy) keeps skyrocketing over the next two weeks, but even if that happens, this position could be protected by resistance TSL might find around $51, where it topped out in May.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in TSL.

MOST NOTEWORTHY: The medical supplies and devices sector, East West Bancorp, Tempur Pedic and AbitibiBowater were today's noteworthy initiations:

• Credit Suisse initiated the medical supplies and devices sector with a Market Weight rating and started shares of Edwards Lifesciences (NYSE: EW) and Becton, Dickinson and Co (NYSE: BDX) with Outperform ratings and Medtronic (NYSE: MDT) and Boston Scientific (NYSE: BSX) with Neutral ratings.
  
• East West Bancorp (NASDAQ: EWBC) was initiated with a Buy rating and $36 target at B. Riley; the firm's target implies a 23.1% potential total return over the next twelve months including the stock's 1.35% dividend yield.
  
• Tempur Pedic (NYSE: TPX) was started with an Outperform rating at William Blair, as they find the current valuation attractive for long-term investor given the company's strong position in the specialty sleep products.
  
• Deutsche Bank resumed coverage of AbitibiBowater (NYSE: ABH) with a Hold rating and $29 target, citing the strength of the Canadian dollar and difficult newsprint fundamentals.

OTHER INITIATIONS:

• Banc of America initiated shares of JA Solar (NASDAQ: JASO) and Trina Solar (NYSE: TSL) with Buy ratings and targets of $73 and $76, and initiated Horizon Lines (NYSE: HRZ) and Solarfun Power (NASDAQ: SOLF) with Neutral ratings and targets of $34 and $14.

As the hubris of non-democratic nations like Venezuela and Iran builds, feeling more manly as they receive windfall profits from higher oil prices, U.S. brain power once again looks like it will triumph.

While it will take decades to replace our dependence on foreign oil, the powerful results reported by First Solar Inc (NASDAQ: FSLR) and Sunpower Corporation (NASDAQ: SPWR) plus others point to the first stages of finding serious solutions for alternative fossil fuel sources.

First Solar reported first quarter revenue of $66.9 million and net income of $5 million, smashing Street estimates. The stock was up over $5 in yesterday's trading.

Sunpower, which we have been blogging about for a while, was up slightly in yesterday's trading along with Trina Solar Ltd ADS (NYSE: TSL) and JA Solar Holdings Co Ltd ADS (NASDAQ: JASO). After decades of the alternative power stocks floundering, these stocks have products, revenue and earnings.

Brain power will always win out over digging stuff out of the ground.

John McNay, portfolio manager of Essex Investment Management, provided some good investment ideas on the evolving high-tech power business in this weekend's Barron's Magazine (subscription required). A few of these we blogged about in the past, but they're worth noting again.

• Sunpower Corporation (NASDAQ: SPWR), the Cypress Semiconductor Corporation (NYSE: CY) spin off, makes semiconductors for solar cells and solar panels
• MEMC Electronic Materials Inc (NYSE: WFR) makes the polysilicon that is needed to manufacture the solar cells and panels based on semiconductor technology
• Suntech Power Holdings (NYSE: STP), First Solar Inc (NASDAQ: FSLR), Canadian Solar Inc (NASDAQ: CSIQ) and Trina Solar (NYSE: TSL) were other stocks mentioned.

Sunpower and MEMC we have blogged about and know the companies reasonably well. The others you have to do your homework on, as these are new ideas to this Fly.

TJ Rodgers, Cypress Semiconductor's CEO, referred to Sunpower as Intel during the 1970s. That is a big statement. This is an important industry that will get a lot of investors' attention during the next five years. Solar energy utilizing semiconductor technology is an investment theme that is still in its very early stages.

As a public service to the devoted readers of BloggingStocks, I've decided to spread my own holiday cheer. Below is a quiz to test your knowledge of recent big business stories that you may have overlooked. If it were up to me, I would give away a really huge prize for getting the answers right, such as your weight in Berkshire Hathaway (NYSE:BRK/A) stock or shares of Google (Nasdaq:GOOG) at the IPO price. Alas, there is no prize that I can offer you other than the satisfaction of knowing that you are smarter than the average investor. The correct answers are at the bottom.

1) Heelys (NASDAQ: HLYS) -- As of October 31, how many people worked for the Carrollton, Texas-based maker of wheeled sneakers that have delighted Wall Street, and horrified school administrators and mall managers: a) 38; b) 380; c)3800; d) the number is dwarfed by the millions of annoyed parents shelling out $59 to $99 for a toy that their kids will grow out of and grow bored with in the next few months.

2) Triad Hospitals Inc. (NYSE:TRI) -- Triad Hospitals CEO James Shelton has recently told TPG Axon's Danakar Singh that he's found the hedge fund's recent missives that have criticized the management of the hospital chain to be: a) "productive and useful", b) "way off base")c)"beneath contempt" d) Shelton hasn't responded to Singh's letters.

3) AMC Entertainment -- How long has it been in fiscal years since the movie chain operator, which recently announced plans to go public, was profitable? A) 4; B)9; c)2; d) this company is profitable now.

4) Artes Medical (Nasdaq:ARTE) -- On October 26, the maker of injectable cosmetic products, CEO Dr. Stefan Lemperle got; A) a grant for 10,000 restricted shares; b) replaced because it was in the "best interests" of the company; c) a $10 million loan forgiven; d) a new type of collagen that makes him look 20 years younger.

5) Friendly Ice Cream (Amex:FRN) -- The Lion Fund's Sadar Biglari has vowed that if elected to the Friendly Ice Cream board, he and associate Philip Cooley would be; a) "technically and psychologically independent" b: "Eager to learn the restaurant business from a top-flight management team"; c)"interested in hiring co-founder S. Priestly Blake to run the company;" d) "eager to explore a merger with Applebee's (Nasdaq:APPB), which has also has been targeted by activist investors.

6) Trina Solar Ltd (NYSE:TSL) -- The Chinese-based solar power company said in its recent prospectus that auditors found: a) that its books complied with US and Chinese GAAP; b) That its books complied with Chinese GAAP but not US GAAP; c) that its books didn't comply with either US or Chinese GAAP; d) that its accounting "more than met" applicable standards.

7) Lockheed Martin (NYSE:LMT) -- Lockheed Martin will no longer pick up executive's tab for; a) Country Club memberships; b) Local Town Car service; c) Tickets to sporting events; d) All of the above. (via Footnoted)

8) Google, Inc. (NASDAQ: GOOG) -- According to the Washington Post, How did Google co-founder Sergey Brin dress when he went to lobby Congress? a) Jeans, silver mesh sneakers and a black t-shirt; b) a three-piece custom tailored suit; c) A tweed sports coat, dress shirt and Chinos; d) A golf shirt with a Google logo, tan Dockers and cowboy boots.

9) Tribune (NYSE:TRB) -- Which of the following rich guys has NOT been reported to be interested in buying one or more Tribune properties; a) David Geffen; b) Eli Broad; c) Jack Welch; d:) Saudi Prince Alwaleed

10) Facebook -- How has Facebook CEO Mark Zuckerberg driven executives from Yahoo! Inc. (NASDAQ:YHOO) and other potential suitors crazy, according to the Wall Street Journal. a) Not available for scheduled 8 a.m. conference call because he wasn't awake; b) couldn't do a weekend meeting because his girlfriend was in town; c) A&B; d) Neither

Correct answers: 1) a but d also is acceptable. 2: d; 3:b; 4:B; 5:a; 6:c: 7:d; 8:a: 9) d; 10) c

Jonathan Berr is editor of http://www.desperateinvestors.com