Technical Monday: A Look at Solar

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I had another dream over the weekend.

This dream wasn’t the same as the ones I have had about sugar in 2019 or gold in 2020 or the Swiss Franc in 2024.

Those were literally out of the blue, based on some who-knows-from-where voice in my head that wakes me up.

This dream was more of a real dream, which I believe was based on assimilation of the news, charts and our own actual position in the solar energy ETF TAN.

The News

1. One big headline was from last week when the Supreme Court upheld two environmental regulations put in place by the Biden administration.
2. Oil prices-with weather and geopolitics at play, whenever oil gets pricier the conversation turns over to alternative energy.

The Charts

I have 2 for you today. The Daily chart above and the weekly chart below. Let’s examine.

Note that the channel lines connect a double bottom from August and September.

The top of the channel corresponds beautifully with the 200-daily moving average.

The July calendar range sits right above the MA. TAN is currently above the 50-DMA.

And the best part-TAN outperforms SPY.

Real Motion is in a bullish divergence.

If we move out the timeframe to weekly, the channel is equally interesting.

We can see the double bottom.

And, we can see that the top aligns with the 50-week moving average.

The Leadership is not as clear-TAN and SPY are neck in neck.

Real Motion shows momentum and price are also well aligned.

In both the Daily and Weekly charts, 43.55 looks like the logical price to clear.

 

Educational purposes only, not official trading advice.

For more detailed trading information about our blended models, tools, and trader education courses, contact Rob Quinn, our Chief Strategy Consultant, to learn more.
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Mish in the Media-Want to see more? All clips here

Phoenix TV China What Do China Investors Want to know? 10-07-24

Phoenix TV China Will the China Rally Continue? Mish covers the recent run and what to expect next 10-07-24

Business First AM Mish covers the consumer and what’s on sale right now. 10-04-24

CNA Asia First Mish starts at minute 14 when they announce her crystal ball and then it continues at minute 17:11 October 1, 2014

Stockpick.app Clip on why we should not panic yet 10-01-24

Weekly Podcast Geoff Bysshe and Mish All about the importance of the 200-week moving average 09-30-24

BNN Bloomberg The Open Mish sits with Amber and gives you very specific factors to watch 10-01-24

 

Coming Up:

October 7, 14, 21, 28 Podcast with Geoff Bysshe

October 9 Markets Misbehaving with Dave Keller

October 9 CNBC Asia Capital Connection

October 10 Wealthwise Jordan Kimmel

October 16 Real Vision

October 18 Maggie Lake

October 24 Live Coaching

October 29-November 4 Vacation

December 5-7, 2024 Money Show Master Class

Weekly: Business First AM, stockpick.app

 

ETF Summary

(Pivotal means short-term bullish above that level and bearish below)

S&P 500 (SPY) 565 pivotal support

Russell 2000 (IWM) Range 215-225

Dow (DIA) Another potential topping pattern?

Nasdaq (QQQ) 485 pivotal resistance

Regional banks (KRE) 52-55 support zone

Semiconductors (SMH) 240 pivotal

Transportation (IYT) 67.00 pivotal

Biotechnology (IBB) 140-142 support zone

Retail (XRT) 75 pivotal

iShares iBoxx Hi Yd Cor Bond ETF (HYG) 79.50 failed while volatility rose