Many solar stocks have been crushed lately, coming off epic moves to the upside. As light, holiday volume takes over, these stocks should see buying into the end of the year. Many of these stocks have pulled back into key technical levels as well. For instance, take a look at the First Solar, Inc. (NASDAQ:FSLR) chart. It has pulled back into the 200 day moving average. Also, take a look at Chinese solar Hanwha Solarone Co Ltd (NASDAQ:HSOL). This stock has also had a big pull back into the daily 200 moving average.
Please note that this is just a swing trade into the end of the year. After they get a bounce, selling will resume in 2014. Take the seven day free trial to the Research Center. Get our detailed swing trade entry and exit points live as the action happens, (these alerts have a documented 300% return for 2013) everything you need to know to profit for life. Join the free trial, it’s free and it’s the best!
Chief Market Strategist
Tesla Motors Inc (NASDAQ:TSLA) is consolidating throughout the lunch time period as the markets have fallen. This consolidation pattern is bullish and with the market weakness, it signals upside soon, on any market bounce. Look for a pop intra day on TSLA to the $144.25 level, then $145.15 and $146.00.
Take the seven day free trial to the Intra Day Stock Chat. Get day trading entry and exits along with viewing live charts, asking questions live and learning the proprietary PPT Methodology. Join today and profit for life.
Chief Market Strategist
Over the past few trading sessions the major stock indexes have come under some serious selling pressure. Many traders and investors have been focusing on the possible tapering of QE-3 by the Federal Reserve next week. Remember, the major stock indexes have surged on the back of the easy money policies that have been implemented by the Federal Reserve since 2008. So if the central bank decided that they would begin to cut the easy money policies it could certainly hurt the stock markets. Why would the Federal Reserve start to taper now? After all, this is the last FOMC meeting that Ben Bernanke will be in charge of. As you all know, he is stepping down as chairman and being replaced by Janet Yellen. She might be more dovish than Ben Bernanke, so there is a fair chance that there will not be a taper at all in December. Should the Federal Reserve decide to taper it would probably be very small, perhaps $5 billion to $10 billion in U.S. Treasuries.
We all know that the U.S consumer accounts for roughly 70.0 percent of the consumer spending in the United States. The only way the easy money policies can last is if the public spends money. This tells us that the central bankers need the U.S. consumer to spend money in a big way. If the stock market declines then the U.S. consumer that has a 401K or a retirement plan might cut their holiday spending into the new year. We all know that the Federal Reserve does not want that happen, so they will probably do their best to keep this rally alive. So there is still a fair chance that there could be a Santa Clause rally before the end of the year.