Energy and basic materials moved higher last week as crude moved higher. Even with Friday’s pullback the sectors managed to gain ground, as the outlook for crude to climb back near the $130 level was put into play. This move prompted a rally in the alternative energy stocks as well. Coal index was higher by 15% and the solar ETFs gained more than 10%. Solar made a nice move bouncing off the recent lows. (NYSE: KWT) [1], Market Vectors Solar Energy ETF and (NYSE: TAN) [2], Claymore’s Global Solar Energy ETF, both achieved nice gains. The question remains can or will they hold on to the move? With oil basically flat on the day both took a breather. These ETFs have a short existence so making any technical predictions aren’t prudent at this point. The break above resistance on both was a positive and money flow has been on the rise as you would expect. Plenty to speculate on short term especially with the tax credit still pending renewal by Congress in September. I would be cautious trading KWT as the volume is thin. TAN is better in that regard with the average volume over 210k shares a day. If I were to play this sector currently I would look for a short term pullback near the $24.65 mark (TAN) as a potential entry point. The link to the price of crude is obvious so take that into account looking forward. Use a disciplined strategy to play, define your entry, exit and target prior to putting money to work.