Members of my VIP Trade Room have been asking me over the past few sessions or so if it’s time for us to move back into solar energy and EV stocks.
If you can remember, I was hot and heavy with these names for quite a while.
But since then, it seems like solar energy and EV stocks and ETFs took a big dump below their 200-day moving averages. They went from being darlings of Wall Street to the weakest-performing sectors.
So the real question is whether they’ll continue moving lower, or begin to spike higher once again…
Let’s back up a little bit first…
Immediately after the first 2020 U.S. presidential debate in September, the stock market began to price in a Biden win. This also happened to be the same day the Russell 2000 saw a major breakout move.
So the market assumed that if Democrat Joe Biden won the election — which he did — he would ease up on China, a major producer of smaller solar energy and electric car parts.
The other major factor was Biden’s $2 trillion investment plan to rebuild the nation’s infrastructure and target the benefits of using clean energy
Biden even pitched a $174 billion electric vehicle proposal, aimed to jump-start domestic supply chains and expand EV and battery manufacturing in the U.S.
The plan was also set to give consumers point-of-sale rebates and tax incentives for buying affordable, American-made EVs.
But since then, things have fizzled out…
So let’s take a look at some of my charts to see where solar energy and EV stocks are now. I’ll show you whether it’s time to hold them, fold them — or just run away from these stocks in general.
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