• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 2 hours Chicago Threatens To Condemn - Possibly Demolish - Churches Defying Lockdown
  • 27 mins Let’s Try This....
  • 29 mins COVID 19 May Be Less Deadly Than Flu Study Finds
  • 35 mins Would bashing China solve all the problems of the United States
  • 9 hours New Aussie "big batteries"
  • 4 hours 60 mph electric mopeds
  • 14 hours The CDC confirms remarkably low coronavirus death rate. Where is the media?
  • 6 hours China to Impose Dictatorship on Hong Kong
  • 5 hours Pompeo's Hong Kong
  • 10 hours Monetary and Fiscal Policies in Times of Large Debt:
  • 2 days Nothing can shake AMLO’s fossil-fuel fixation
  • 10 hours Backlash Against Chinese
  • 1 day Iran's first oil tanker has arrived near Venezuela

Living Dangerously In Solar Stocks

When it comes to the stock market, bottom fishing can be a dangerous game.

Once momentum takes hold, particularly downward momentum, it can continue well past the point where logic is the defining factor. Despite that, though, it was what I was trained to do. Life in a dealing room is about seeking opportunity and taking risk in a controlled manner and there is no denying that when prices are falling there is opportunity. The rewards for a contrarian trade are such that, providing you can cut for a relatively small loss if things don’t pan out, it is worth taking a shot, or even repeated shots, at finding the bottom.

In general, in order to have a logical level at which to set a stop loss to limit the downside to such trades, however, you have to wait for at least a small bounce before jumping in. That way, by setting a stop to protect against a renewed push downwards, you can participate in any sustained recovery without risking too much. That, in turn, enables you to try several times to find the bottom of a sustained move. It is not a strategy for the faint of heart, nor for somebody whose emotions can get the better of them. Taking losses, even small ones, is no fun.

With that in mind, for those not opposed to taking a risk, the required “drop and bounce” pattern is present right now in the solar power sector. It is probably best demonstrated by an ETF for the industry in general, such as the Guggenheim Solar Fund (TAN).

As…




Oilprice - The No. 1 Source for Oil & Energy News