Stock Watchlist, 07/29/22

Bear market rally or something more?

I have been on the bearish side for most of this year, but this week was a powerful rally for the bulls out there. The market really hasn’t had a leading sector since Oil + Gas stocks went on a tear, those stocks have been consolidating for quite some time and it’s yet to be seen if that run will continue.

What caught me eye this week, was the strength in the Renewable Energy Sector, in particular Solar Stocks. There was huge volume coming into these stocks as they broke out of stage 1 bases. It reminded me of when I caught the move in uranium stocks last fall.

Obviously if market conditions really deteriorate from here, these stocks could have failed breakouts quite easily, so it’s important to have stop losses set if that occurs. Most people seem bearish right now, so maybe this rally could have more legs than one expects.

Here is a few of the stocks that caught my attention, charts below are on the weekly timeframe as used in the Stage Analysis method.

Sunnova Energy International NOVA

Note - 2X average weekly volume is one of the things I look for, as a stock breaks out of it’s base structure. The 30 week EMA is starting to turn up, the stock also is breaking out against the $SPX. There will be some overhead resistance for this one in the low thirties. But this is a textbook stage 2 breakout.

Maxeon Solar Technologies MAXN

Note - All the breakouts in the sector have very similar looks. Nice volume coming in as it breaks the trendline. Outperforming the $SPX. There will be some overhead resistance in the near term to break through with this one.

Sunrun RUN

Note - Massive volume coming into this stock, the buyers were powerful driving the price through the trendline. I plan on taking a small position in this one on Monday if the price actions acts like I think it will.