Tyco,
I have posted this for an alliance of what is being said about clean energy globaly.
Using Volatility to Profit from Clean Energy By Nick Hodge | Wednesday, March 11th, 2009
Long-term positions and savings have evaporated quickly. And broader market indexes have certainly been unstable and fickle.
But it's the explosive aspect of volatility I'd like to explore today, especially when it comes to clean energy companies on Wall Street.
Clean Energy: Capitalizing on Wall Street Volatility
It's the epitome of volatility: a near 75% swing from mid-November to early January — which we can now call the Obama-bump — followed by a 30% fall the next few weeks. Then, nearly sideways trading until early February was followed immediately by another ~30% fall the rest of the month. And the fickleness has continued in March, with a 15% uptick or so in the last few days.
It's enough to drive you mad. And it's also enough to make a lot of money.
You see, I've been watching clean energy stocks on the Street for years. . . long enough to know their fair value and price trends by heart. That's the only way to profit in this market — know an industry inside and out, and stick to it.
That way, you can exploit all the nuanced price movements that are classified as volatility by those not as familiar with a certain sector.
I can tell you, for example, that clean energy stock rose in November on the outcome of the election and the widespread perception that the new President and Congress would be more inclined to promote cleantech than their predecessors.
That perception, though valid, quickly waned because of Madoff, TARP, credit default swaps, stimulus negotiations, and all their negative impact on the market, clean energy included.
Then came the anticipation of the stimulus, which drove clean energy stocks higher with its $104 billion for clean energy and green infrastructure.
And then came the public release of the bill-to-be. It wasn't received well, to say the least. Investors wondered how the money would be spent, how quickly it could create jobs, and even if it would help at all once the billions were wrapped in red tape
Tyco,I have posted this for an alliance of what is being said...
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