It appears the market likes the consumer confidence rise in Europe and the consumer spending rise in the US. It likes it, no doubt, because the data speaks to better health for the world’s two largest economies, the US and the EU. By the way, if you combine the GDP of the US and the EU, the total GDP is some $33 trillion. By way of comparison, China and Japan combined are just about $13 trillion. My point is that these two giants are getting healthier faster and the market likes this.
I am not sure what is going on in the technology sector, but the market is not liking is technology right now, or at least it has not liked it recently.
- The NASDAQ Composite just logged its fourth losing day in the past five sessions, hitting new multi-week lows in the process.
The S&P 500 and the DIJA have had a rocky week as well, a reality we saw coming at the end of last week.
- The market as a whole has been stuck in a rut lately … The bears are forcing the bulls to play their cards though, so we should see some trade-worthy clarity real soon, with the S&P 500 now pressing a key support level…
But that reality could be changing today with the coming of the aforementioned economic data, although the market could turn around if the bulls get tired of buying. Like me, the bulls might not quite be sure this is the strong turn up the market needs to break through the resistance.
In any case, I am not word about the market long or short term. It might need a spark of some kind to pop above its defined resistance levels, but in the meantime, it will move within its defined range, which gives us all opportunity to make money. Just have the cupboard stoked with goodies when the spark does come because that will be the big payoff.
I spent this morning reading about solar power, specifically the solar power industry. What I learned is that there is a market battle between solar concentration technology (CSP) and photovoltaic technology (PV). I also learned I don’t know much about either of these technologies, the different players utilizing these technologies, and the economic differences between the two.
- Solar concentration power (redirecting sunlight to a point to boil water) is on the way out. Photovoltaic (PV) is “where it’s at”, as only PV panels are ever going to be cost-effective enough to compete with fossil fuel power head-on.
- Planning for new concentrated solar power (CSP) development in the U.S. almost disappeared in 2013 as developers turned to smaller, more achievable PV installations.
- PV has the advantage in smaller projects because CSP doesn’t readily scale, because declines in PV module costs have undercut trough and tower technologies and put them at a significant cost disadvantage.
It seems that PV is the technology of choice right now, at least in the US, and the reason for that is economic. It is cheaper.
- The United States’ first – and probably only – major solar concentration facility in the Mojave Desert is due to begin producing power this year. It’s already been paid for, so cost-effectiveness isn’t really an issue. But, between the point when the Ivanpah facility was begun and when it was finished, the price of photovoltaic cells plunged and there’s no reason any new solar power plant builds would go the thermal route. Just make sure you’re not investing in an antiquated technology.
And there you are. Like me, get caught up on the technologies, the players, and the action before you plunk your money down. I know I have some money riding on solar, and you can bet that after I finish writing this, I will be delving deeper into the companies and the technologies they utilize.
On another positive market note, a nod to confidence, but on a different plane than the consumer, consider the following information.
- A string of large transactions drove the value of global mergers and acquisitions (M&A) activity up by 54 percent in the first quarter compared to the same period last year, reflecting greater deal-making confidence among chief executives.
It appears that global corporations are putting some of the $2.8 trillion in hoarded cash to work, which is a good sign, a really, really good sign for the market.
Trade in the day; Invest in your life …
