Alternative energy names, like PLUG, BLDP, CPST, SCON and FCEL, are the latest craze on Wall Street. This is a sector that was considered to be a joke, a laughing stock teetering on bankruptcy. Now it’s all the rage.
Before that, the shippers came back to life, eating the brains of short sellers from here to China. Before that the biotech sector surged and before that solar stocks skyrocketed, alongside Chinese burritos and education related names.
If there is one thing that is bankable in this market it is this:
ALL DEAD STOCKS COME BACK TO LIFE, LIKE ZOMBIES, TO AVENGE THEIR DEATHS UPON THE SKULLS OF THE SHORTS WHO KILLED THEM.
And that’s it folks. All you have to do, mind you, is isolate a sector that has been bludgeoned, position accordingly, and wait.
What’s next? Is anything still down?
LNG fuel plays: CLNE, WPRT
Steel and Iron: CLF, MTL, SIM, GGB, VALE
Retail: VSI, GNC, JCP, SHOS, TLYS, ARO, LULU, FRAN, AEO, URBN, ETH
Ag Chem: MOS, POT, SQM, IPI, AVD, TNH
Pawn Shops: EZPW, DLLR, CSH
Gold: GORO, RBY, SAND, KGC, AEM, AUY
Coal: ANR, ACI, BTU, WLT, YZC
Refiners: ALJ, DK, CVI, ALDW, CLMT, PBF
Residential Construction: HOV, MHO, KBH, GFA
REITs: MITT, CBL, O, DLR, AGNC, CCG, ACC, ARR, SBY
There you have it. All of those stocks are part of sectors that have underperformed, measurably, over the past year. Look for signs of resurgence and be careful of false breakouts, since most of the above names have been murderholes.
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