It was quite the day yesterday in the fuel-cell world. How far the mighty can fall when the mighty fly high only on hot air. PLUG fell from the high $11 zone all the way down to just below $6 about as quickly as market gravity allows. Today, it is up somewhat, just as BLDP and FCEL are, but me thinks this is the desperate trying to recoup huge losses.
- Well, yesterday you commented on the stratospheric price level of PLUG and it didn’t tank till today. Kindly explain this delay!
That I did and my explanation is, well, ummm … I suspect the reader who submitted the above comment to me has a good sense of humor, and I like that. Sometimes in this business, you just gotta laugh.
In any case, I had overnight low buys in on BLDP and FCEL. I got in at my lows and have since sold them for a nice profit on both. I have buys in again, as I now see these two stocks as highly tradable again in their current frenetic state. PLUG not so, at least not until it comes down a bit more from its still lofty $7 zone.
As to these stocks all moving in a bunch both up and down, I now understand a bit more about that phenomenon.
- An estimated 35% to 40% of any single stock’s movement is the result of the sector it’s in; its peers can push it higher or lower, for no other reason than the fact that investors assume what’s good for the gander is also good for the goose.
Taking the trite and turning it on its head is always a good thing, but so is giving good information in the process. The information above comes from the Small Cap Network and it is enlightening, for sure. Although BLDP and PLUG are partnered up in some fashion, the two, along with FCEL, ran and are still running as a pack. No matter, what is good for this goose is to keep “gandering” and trading these stocks, as long as they want to keep behaving irrationally.
I noticed the other day estimates for US GDP growth are on the rise for both 2014 and 2015. That is good for the market, as the market loves positive forward-looking statements. Another thing that is good for the market is the slow healing of Europe and the subtle but continual positive forward-looking economic statements coming out of that part of the world.
- German exports and imports grew at the fastest rate in almost two years in January, with exports rising a better-than-expected 2.2% after dropping 0.9% in December. Imports jumped 4.1% following a fall of 1.4% …”Exporters’ business with the Eurozone is working better,” says Bayern LB’s Stefan Kipar. “We expect German economic growth of 1.7% in 2014 (and) it might even be slightly more.”
Aside from the longer-term view of Europe and its impact on global markets, I encourage to you to keep your near-term eye on the fuel-cell stocks, now that they are back in or near trading zones. Remember, buy low and sell high, as long as these stocks insist on huge swings in small time frames.
Wait! How about sell high, buy low, and then do it again if you can. Yeh, that’s better than the trite old saying, “Buy low, sell high,” even if it is absolutely true.
Trade in the day; Invest in your life …
