At this crisis point in history - what could possibly create these rare and extraordinary gains?

An Arizona multi-millionaire's revolutionary initiative is 
helping average Americans  find quick and lasting stock market success.

Since the Coronavirus came into our lives this slice of the stock market has given ordinary people the chance to multiply their money by 96% in 21 days on JP Morgan.

Stocks  | March 19, 2019

Each weekend I scan hundreds of stock charts in the ESG space. I focus mainly on environmental stocks in my research. I believe the sector is setting up for a long bull run after working through a lot of the hangover from the bursting of the 2007 green stock bubble. To me, it’s analogous to how tech stocks suffered a lost decade after the dotcom bubble burst and have roared ahead this decade.  Compiling my top stocks of the week like this is my first step – I look for good stock action first, then drill down into further research to determine to buy or not.  My three bullish stock eco stocks for this week.

Chart Confluence: Aqua Metals

The chart I’m most intrigued by today is Aqua Metals, maker of a novel way of recycling lead batteries. As a technical analyst, I love to see a confluence of indicators, especially traditional ones like AQMS is displaying now. The three-month daily chart below is showing shares just completed a golden cross, with the faster, 50-day moving average crossing over the slower one. Here the 50-day (blue line) cross the 200-day (yellow line). These are simple moving averages, the average of the closing prices over their periods. One of the better-known indicators, my experience is that golden crosses can be overrated, so I ignore them unless both averages are trending higher. The 200-day has yet to turn higher here, but my preferred long-term moving average, the half-year 126-day MA has, so this golden cross has significance to me.

Along with this, the longer-term chart shows that Aqua Metals is finishing off a double bottom formation that started in the latter part of 2017, the two sets of golden lines here. If shares can push through the low $4 area, I think you could see a run to the next area of resistance, near $7. That’s a big if though.

Lead mining can be an environmentally unfriendly process (and the smelting of lead moreso). But lead is a necessity, for batteries and roofing products, primarily. U.S. manufacturers shipped 3% more car batteries in 2018 over the prior year, but domestic production at the country’s 10 mines has been falling steadily, down 31% since 2014, according to the U.S. Department of the Interior’s commodity service. Aqua Metals is a small developing company that has a way of recycling lead in a closed loop recycling method in room temperature water. The company’s really just gearing up now, with plans to expand the number of recycling kettles it has. It generated just $4 million in sales in 2018. It looks like the progress is coming along enough for investors – shares started this latest leg of their move with earnings released February 28.

Bigger and Brighter: Universal Display Corp. 

A few weeks back I cleared out my living room for a fresh coat of paint, but my kids really wanted to watch a Harry Potter movie. So I set up our flat screen TV up in another room and we watched about half an hour or so before it was bedtime. As I rose to take the TV off the dining room chair I had set it on, it fell straight over, smashing the screen. I had made a silly – and expensive – mistake. Five years ago when I bought that doomed TV, OLED (organic light emitting diode) TVs were the next big thing. Now there are lots of OLED TVs available and just about all of the two dozen top picks in my Consumer Reports buying guide are OLEDs. They’re not cheap – they generally start in the mid-$1,000 range and go much higher – but not prohibitive either. OLEDs provide superior picture while using less operating voltage – they use about one third less than same-sized plasma TVs of last decade and maybe two-thirds less than the old tube TVs. That energy use gain is offset a bit by the fact OLEDs allow for much larger TVs, but so far still seems to be a net efficiency gain. More significantly, OLEDs are used in mobile devices, a much larger market where OLED’s flexibility and longer brightness life are highly valued. The "organic" in OLEDs means it's made of carbon-based  materials.

That brings us to another good-looking stock chart this week: Universal Display Corp., with the ticker OLED.  OLED gapped higher in late February from earnings announced on February 22. That leap is a bullish move that looks even better long term because the $128 area had been established as significant resistance multiple times. Like AQMS, it looks like OLED has closed off a bottom formation that began last August. Likely that $128 region is now support and OLED could work higher. The improved volume since the jump higher is encouraging too.

Water's Gushing: American Water Works

Water related stocks have been the strongest sector of environmental-focused investing lately, appealing to both utility-minded investors and macro investors who expect climate change to make water access and rights increasingly valuable. The largest water-focused ETF, the Invesco Water Resources Fund (PHO) is up 19%. That return is pretty much identical to American Water Works for the year, but over time shares (ticker: AWK) have been less volatile than the ETF with as-good or better returns depending on the time frame. It's worth considering cherry picking individual issues that show long, constructive advances like here, even as PHO is a fine fund itself. The three-year daily AWK chart here shows a good long term effort at working higher. What caught my eye this week is the massive volume shares did last week. The grey bars at the bottom of the chart show AWK saw the most action Friday that it has in years (since March 2016 to be exact). It’s intriguing to see a utility attract that much buying, especially a large cap. American Water Works is a geographically diverse U.S. operator of water utilities and wastewater treatment facilities.

A revolutionary initiative is helping average Americans find quick and lasting stock market success.

275% in one week on XLF - an index fund for the financial sector. Even 583%, in 7 days on XHB… an ETF of homebuilding companies in the S&P 500. 

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