Going Solar

 | Jan 18, 2014 | 12:00 PM EST  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

spwr

,

scty

,

jks

,

fslr

,

rsol

,

jaso

,

tsl

,

sune

,

yge

,

yelp

,

csiq

,

jazz

,

yy

Last week I discussed how tracking the leading big-cap momentum stocks could provide good insight into the health of the overall market. These stocks, Yelp (YELP), Jazz Pharmaceuticals (JAZZ), Canadian Solar (CSIQ) and YY Inc. (YY), which I call the new Four Horsemen, continue to act strongly and are giving few hints that the market is topping.

In addition to tracking key individual stocks, it is extremely important to track the leading market sectors. Market players often underestimate how long a hot group can lead the market. Not only does the action of the sector provide insight into market health, it is also fertile ground for finding good stock picks.

Some of the leading sectors in the market are represented by the Four Horseman: JAZZ reflects the strength in biotechnology, YY represents the very strong China Internet group, Yelp is in the social media group, and CSIQ is a key stock in the solar-energy sector.

Solar energy is a group that has been leading for a number of months and I believe it is going to continue performing well in 2014. Names in the group that are on my watch list include SunPower (SPWR), SolarCity (SCTY), JinkoSolar (JKS), First Solar (FSLR), Real Goods Solar (RSOL), JA Solar (JASO), Trina Solar (TSL), SunEdison (SUNE) and Yingli Green Energy (YGE).

Finding the leading groups and digging through their components is an excellent way to find new picks. The key is to monitor them closely as the charts develop and then act aggressively when the time is right. I'm tracking the above-mentioned  stocks closely and looking for entry points. Some of their charts look ready to move in the near future:

Columnist Conversations

Is this the biotech revolution or the biotech bust? View Small Cap Biotechs Like Never Before: Transparency is...
Lang:
Last year saw the MC NYSE oscillator hit -300 on about five occasions, and each time a massive bounce ensued. ...
If you are in the NYC area, Bob Lang and I will be in town this Monday and Tuesday night. We'd love to grab a ...
There are no signals in IWM....Still watching zone 2 in WYNN for a potential entry. The updated chart is below...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.