As requested by
@Jeremiah S, here is my technical take on TAN (top Solar ETF) and QCLN. Let's start with TAN (Invesco Solar ETF). TAN is a solar ETF and its holdings include: ENPH, RUN, SEDG, FSLR, DQ, SCATC, HASI, SPWR, ECV, NEOEN, AY, CSIQ, CWEN Solar sector has been a scorching hot performer in 2020. However it has recently pulled back after going parabolic in the 4th quarter 2020.
In fact, on Friday solar was the worst performing industry and last week solar was the 2nd worst performer. (Source: FINVIZ)
Last time when solar industry had the among the worst weekly performance, it was a great dip buying opportunity however every moment is unique in the market.
TAN is forming a very big base. What do you think? Do you see this taking out its all-time-high level? Is solar the future? I heard of people with EV charging their cars with solar panels at home. Unfortunately where I live we don't get much sunlight around this time of year. Even though I like the dip buying idea of this at around 100 because the momentum crossing on weekly is a big deal (especially when they are both momentum are in the overbought level), I'd rather wait for flush. Daily momentum is also coming down rather hard. 21EMA (D) might not be enough to act as a cushion but no one knows until next week. However there is a confluence of support levels around 100. Now let's go to QCLN (First Trust Nasdaq Clean Edge Green Energy ETF) and its holdings include TSLA, ENPH, PLUG, NIO, ALB, SEDG, RUN, CREE, ON, FSLR, OLED, BLDP, LFUS, ORA
It has exposure to both EV and Solar industry.
QCLN monthly QCLN Weekly QCLN Daily A word of caution:
Seasonality says both TAN and QCLN have performed horribly in March historically.
March Return (Between 2017-2020): TAN: UP 1/4, Down 3/4, with avg return of -11.1%
QCLN: Up 1/4, Down 3/4, with avg return of -7.0%
So, It might be a good idea to not hold any of these into March. Also Looking at QCLN Options Chain, Right now, IV is jacked up on QCLN with Current IV Percentile being 95%. This probably not the best time to buy QCLN options in terms of its IV.