Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Chinese solar firm Yingli Green Energy (NYSE: YGE) are up 10% today on news that Germany is considering cutting solar subsidies.

So what: A possible feed-in tariff cut could end talk of a hard cap on solar installations, leading to more sales in the region long term. A FIT cut would lead to rampant installations before the cut (possibly in April) and price pressure after the cut, squeezing margins. The trade-off of higher sales and lower margins is apparently one that investors are willing to make.

Now what: The market has applauded this news, pushing the solar sector higher with LDK Solar, JA Solar (Nasdaq: JASO), and SunPower (Nasdaq: SPWRA) climbing alongside Yingli. I am a long-term solar bull, but I don't see this as terribly bullish news for the sector. Firms are weaning themselves off Germany's generous feed-in tariffs, but this brings into question demand for the second half of the year -- a fear that has been weighing on solar stocks. On the positive side, a final FIT answer from Germany would lead to a little more clarity for solar stocks going forward. For now, I'm going to give this news a little time to sink in, thinking that the market will reconsider just how bullish today's news is in the days to come.

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