Bad Week Ends on a Good Note

solar stocksWell, after yesterday's 300+ point loss on the Dow, markets rebounded and were able to close out the week on a positive note with the Dow closing up 125 points. In fact, I believe next week, we will see quite a bit more green. I was surprised to see yesterday's big sell off, not that I don't feel that we are overbought in the markets (I very well do!), I just feel that to closely track that "topping" curve we are seeing in the S&P, a bit of a rally back is needed to gain much larger momentum on the downturn. Two weeks ago, we saw a bit of what this trading environment is capable of. Who said we are not vulnerable to market crashes in this day and age?

One industry I have been tracking lately is solar. The past month, solar had been demolished due to its strong tie to European markets. In fact, Germany acts as one of the largest solar nations out there. Due to recent debt turmoil in Europe, solar has taken a beating. STP, a solar company I track closely has pretty much been cut in half in the last couple of months. I still believe there is a lot of upside in green energy stocks. Not so much because they are a financial viable business model, but more so that our current president has an agenda that he has proven he will stick to, and green energy is one on the top of the list. Already, bills have been proposed to exempt capital gains from green energy company investments as well as tax credits. If these perks get passed, watch for a big move into some of these companies.

As I have said before, Monday has been very reliable in turning into a green day. In fact, last Monday I was sure we were going to see our first selling Monday, as the market was down 180 points at one point. However, the market (or whatever powers it was) pushed back and was able to get all the major indexes back into the green before close. It was really phenomenal to watch. If yet again we see another green Monday, I will be impressed, as there is a lot of uncertainty going into the weekend with the financial reform bill. So time will tell.

Commodities should still perform well, as well as gold. After a bit of a rally back, I expect a pretty large jolt to hit markets, which usually tends to bring commodities to a premium. Also, Treasuries should get another bump as well. So for me, I expect a green week next week and hope to make some good profits to take advantage of it. I will also be attending the largest retail real estate conference in Las Vegas this weekend, which is always an eye opener. I will keep you posted on what the sentiment is like there, which is a wealth of knowledge. Happy Trading.



    Everybody has a bad week now and than.