ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
It only took a day or two for First Solar (FSLR) and SunPower Corporation (SPWR) to confirm the bearish pattern I pointed out after the recent post-earnings celebration for SPWR. The charts below show rapid follow-through from the big fades that followed huge up days in each stock. Source: FreeStockCharts.com Note well that the bears … Read more
After the stock market’s sharp rally off the March, 2009 lows, most solar stocks stopped appreciating by that summer. For the remainder of the year, they experienced wild swings up and down in price in quick succession. In the summer of 2010, it appeared prospects had finally turned around for the better for solar stocks … Read more
Prices soared for solar stocks in September. In October, volume has soared…but prices have swung sharply downward after a very strong start to the month. In most cases, solar stocks have lost all their gains for the month and then some. This trading action is creating buying opportunities, especially where uptrends and/or critical technical support … Read more
Today I learned for the first time that J.P. Morgan (JPM) has a sizeable portfolio of alternative energy investments. Through J.P. Morgan’s Energy Investments group the company has grown a 6 gigawatt portfolio over the last 7 years. This multi-billion dollar portfolio is co-owned with 13 energy firms and is mainly focused on wind energy. … Read more
MEMC Electronic Materials (WFR) manufactures silicon wafer solutions for the semiconductor and solar industries. WFR fell 19% on Friday in response to earnings despite the company’s reassurances that it is on track to meet full-year guidance targets (click here for the transcript from Seeking Alpha): “In the first quarter, revenue was ahead of our internal … Read more
Nowhere is a destination for the average solar stock these days. For example, TAN, the Claymore/MAC Global Solar Energy ETF, has been stuck in a trading range since May of last year. 16 months ago, TAN was selling at the current price of $8.33/share. This dramatic under-performance (for example, relative to the S&P 500) will … Read more
Speculative stocks typically get hit the hardest during corrections in the stock market, and solar stocks definitely qualify for a beating. In the past 4 days of selling, TAN, the Claymore/MAC Global Solar Energy Index, is already down 10%. Solar stocks have been big laggards this year as TAN is now back to even on … Read more
Thursday’s stock market sell-off could finally be the start of the sharp Fall correction I have speculated about in various forms for months now. The extent of the technical damage and the heavy distribution of stock certainly seem to have put a ceiling on stock prices for now. Solar stocks were heavily hit as speculative … Read more
I added ReneSola (SOL) to my solar portfolio for the first time as a speculative play based on heavy call volume at the October 7.5 strike. I do not know what those call buyers expected, but certainly today’s news is typically not conducive to bullish feelings in the next month or so: an acquisition, issuance … Read more
Last week, I noted heavy call activity in MEMC Electronic Materials (WFR) that was notable enough to lure me into buying. Today, WFR continued its impressive recovery from an earnings warning with an 8% one-day pop giving it a 17% run since the close following warning. Briefing.com attributed today’s trading to takeover speculation. Whatever the … Read more