Canadian Solar's (CSIQ) earnings disappointment last Friday has set the stage for a potentially large shakeout in one of the best performing sectors of 2014. After a 40% gain for the solar sector during the first two months of the year, many of the leading solar names are set up for a sizable correction:

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Canadian Solar (CSIQ)

CSIQ_Daily_3.10.2014

Significant top is now place with a daily close below $35.00 setting up at least another 10% of further downside.

First Solar (FSLR)

FSLR_Weekly

H&S top with a slanted neckline forming on the weekly chart - volume and momentum profile confirms.

GT Advanced Technologies (GTAT)

GTAT_Daily_3.10.2014

Parabolic short setup could lead to at least 50% of recent rally being retraced in the coming weeks.

See also China's Bear Stearns moment:

China_Default