EarningsBeats.com Digest for October 14, 2020
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Trading Places Live!
Join Tom Bowley for a briefing on market activity on Mondays and Wednesdays from 9-9:30 am EST before the opening bell. Click here to listen live or visit our YouTube page later today to view the recorded session.
Today at 4:30pm EST
"Sneak Preview: Q3 Earnings"
Join Tom as he reviews the earliest earnings reports that have been released in this new earnings season. In addition, Tom plans to look to the week ahead and provide his opinions how many key companies are likely to report based on current technical conditions. It's a very timely webinar that could change the way you approach earnings season!
This is a FREE event and is open to everyone!
There's Both Good And Bad News On This Renewable Energy Chart
Renewable energy ($DWCREE) has been one of the strongest industry groups since the COVID-19 pandemic began. The index has gone from approximately 70 at its March low to more than 180 at yesterday's close. When I look at a 6 month performance chart, the DWCREE trails only automobiles ($DJUSAU). Clearly, it's been strong. So when I pull up a chart of First Solar (FSLR), I see a renewable energy stock breaking out to multi-year highs, a major
positive development, but it's not all positive:
Look at FSLR's long-term relative strength track record. It's awful. Look at its accumulation/distribution line (AD Line). It's not any better. I believe this is FSLR's opportunity to shine. It's in a strong group and it's broken out to its highest close since 2011 - that's a BIG deal! Now it's time to show some relative strength. Plenty of technicians will see the FSLR chart and the breakout. They already know
renewable energy is hot. So the question is......can FSLR begin to show leadership. If it can, then I'd want to be long the stock. But if it can't, there are plenty of other choices in the space like SEDG, ENPH, and short squeeze stocks like JKS and SPWR.
Happy trading!
Tom Bowley
Chief Market Strategist
EarningsBeats.com
Better Timing. Better Trades.
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