Among today’s big stock market winners today: SolarEdge Technologies (SEDG), the biggest maker of inverters used in turning sunlight into electricity, closed up 16.67%, and Sunrun (RUN), a leader in the installation of residential solar systems, closed up 19.92%. This rally had absolutely nothing to do with any news out of the recently ended COP28 United Nations Climate Conference. It was a pure reaction to the signs in yesterday’s Dot Plot from the Federal Reserve that the central bank was looking to cut interest rates at least three times in 2024. Makes perfect sense.
Yesterday’s bounce on the better-than-expected July CPI inflation numbers–the annual rate dropped to 8.5% from 9.1% in June while economists surveyed by Bloomberg were expecting a drop to an 8.7% rate–looks to be fading today, August 11, but I’m going to squeeze in two more sells, Sangamo Therapeutics (SGMO) and Sunrun (RUN) for tomorrow to take advantage of this Bear Market rally. Both sells are out of my Volatility Portfolio. The high potential upside of these two picks has driven them to big gains in the Bear Market rally that began in July. That same volatility, on the downside, makes them stocks I don’t want to hold in any return of the Bear Market.
I’m starting up my videos on JubakAM.com again–this time using YouTube as a platform. My sixty-third YouTube video “Trend of the Week: Alternative Energy Stocks” went up today.
Last week’s sell off and rally, which left the Standard & Poor’s 500 down 1.4% for the week, resulted in farther dips in many of the Dip-O-Meter stocks. The picture that emerges is much more complicated than simple advice to “Buy on this dip.”
Looking at the recent performance numbers on the 20 stocks I’m tracking in my Dip-O-Meter as of the close on Friday April 9, I have to conclude that for most of these stocks it’s time to take a pause on any “buy on the dip” opportunities. What I’m seeing in this sample is a general weakening of the upward bounce on rally days from these stocks–and without a strong bounce on a good day there’s not much reason to buy on the dip.