A lot of the recent leaders continue to pullback with some aggressive selling pressure across the board yesterday. It doesn’t really change much, we know things are short term extended and for the most part need time to consolidate.
Gold miners GFI HL AG etc all behaved well yesterday with Silver starting to build a a new range and potential pivot.
Biotech got slaughtered for the most part, with names like NTLA, CRSP etc giving back their entire recent moves… nasty. There’s no doubt in my mind that I’m early to this move and it’ll require a lot of patience.
PLUG price action remains extremely weak, it’s balance sheet thin and just continues to lose money. If they do not get the DOE loan they’ll need to continue their mass liquidation. This needs to recover fast or I’m gone, BE are the leaders and taking the cherry.
It’s hard to ignore just how good China is looking again, the KWEB weekly is lovely and looks ready for a secondary move, especially as we head into stimulus talks. It’s by far one of the best looking sectors here. Something I’m working on right now is sifting through the best individual names which I’ll take alongside a KWEB position, this will likely take me until the end of the week.
$KWEB weekly is technically still in a stage 1 base yet it’s recent break and hold above $30 presents a great technical entry. The volume has drastically decreased during this pullback.
$FSLR – In terms of “alternative energy” this name continues to act the best and is the only born and breed US solar manufacturer of its size. SEDG sold off 7%, RUN 3.5% TAN 1.6% and this just sits there like nothings happened. At some point it likely shoots straight back to highs. The company has some comfy margins, a lot of assets and healthy balance sheet. If the sector moves it’s the name to be in.
Will check back later to see if there’s anything to add.
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