Encouraging signs for the Greentech sector this week in the market, as we’ve seen a good push over the 200-day moving average in the Wilderhill Clean Energy Index, and the move appears to be sticking better than the prior test in early June. The chart below of the ETF based on the index, the Invesco WilderHill Clean Energy ETF (PBW), shows the sector has also broken the downtrend line (the red line) that started in February. 
The reversal away from the downtrend stared in mid-May and began a new uptrend (the blue line). It’s not shown here, but the new uptrend line actually keeps us above the long-term trend line too. In short, the difficulties we’ve had for much of the year are likely just a medium-term correction in the bull move. Also encouraging is that solar, a lagging sector within Greentech all year, has perked up too. The solar group is now above its moving averages, and they are uptrending for the first time since February. There is some near-term resistance we’re seeing the solar group hit this week, but action is promising. Portfolio-wise, we were stopped out of one position this week, as Chara Solutions triggered our sell-stop. The rest of our trades remain in good form. More updates below. Also, please join me for the 9th Annual Smarter Investing, Greater Profits Online Conference, August 17-19. We have an incredible line-up of Cabot experts ready to share their best picks. Real Money Portfolio Chara Solutions (CHRA) Chara triggered our sell-stop last week with a close on June 23 of 5.05. The portfolio sold the next day, pegged at 5.255 a share, the average of the high and low for the trading session. We prefer to execute sell-stops based on closing prices, but if you have standing sell-stops that get triggered intraday, it generally won’t affect overall portfolio performance in the long run. Regardless, Chara shares have weakened since and now look to be breaking below 4.87, which is the neckline where CHRA forms a double top. A move below that means more bearishness ahead for shares, which a move to 3.60 quite possible. We took a 14% loss on the position. SOLD KraneShares Global Carbon ETF (KRBN) The ETF, which invests in carbon credits in the E.U., California and northeast U.S., saw investor inflows of almost $35 million the past week, brining AUM to more than $500 million. That helped shares advance the past week and we now have more than 7% profit on the position. We have our sell-stop around 34.25, just about breakeven with our buy price of 34.23. That remains a good area still for a sell-stop since it’s a touch below where volatility measures of normal movement say shares could swing without being too worrisome. There’s support above that at 34.7. Share looks more bullish than bearish, with a test of resistance at 37 ahead. Our rating remains BUY. Steel Dynamics (STLD) The company pays a 26-cents-a-share dividend to shareholders as of the end of trading today. We’re close to our sell-stop of 57.50. We will loosen that to near 56.97 (avoid the round number price of 57), to give ourselves room not to get stopped out today. Also, that provides us some more breathing room to let the trade work. Wall Street says it’s bullish on the steelmaker, but price action shows some weakness. However, STLD is still holding most of the big move shares made in the first week of May. In short, we appear to be more in a consolidation period that any sort of sell-off, but we should stay vigilant. We’re down 3%, having bought at 61.13. Our rating remains HOLD. Trex Inc (TREX) A quiet news week for the maker of decking from recycled materials. Management released its annual ESG report which notes 900 million pounds of plastic film and reclaimed wood into its product in 2020, meaning 95% of its products are recycled material. Share action has been a little choppy and range-bound, but we’re seeing higher lows which indicates bulls are more enthusiastic than bears. We want to see shares challenge resistance at 107-109. We’re maintaining our sell-stop near 93 and our rating at BUY. Excelsior Portfolio Our special opportunities portfolio is now in the warrants of six SPACs. Our strategy is buying this basket of six in equal dollar amounts (and separately from the Real Money Portfolio) with the expectation the winners will more than offset losers in the long run. There is no sell-stop set and for now our recommendation on the basket, and each of the businesses within it, is BUY. There is one ticker change this week: Artius Acquistion (AACQ) closed its merger with Origin Materials, and the stock ticker is now ORGN. Li-Cycle / Peridot SPAC (PDAC) Management of the EV battery recycler presents at a Wedbush Securities “de-SPAC” event this afternoon in which it will detail some North America and international expansion plans. A high-yield, short-duration fund that owned 10% of Peridot shares sold this week, closing out an arbitrage play since they acquired the stake at the IPO. The sale didn’t weigh down shares too much, but explains the downtick we saw this week. Our warrants are trading in their normal range. At a recent 2.61, we’re up about 8%. Navitas Semiconductor / Live Oak II SPAC (LOKB) A quiet news and trading week for the SPAC – as of late morning Wednesday the warrants hadn’t traded today (average volume is 60,000 a day). At Tuesday’s close of 2.37, we’re down about 7.5%. Origin Materials (ORGN) Artius SPAC shareholders voted to close the merger with Origin Materials and trading shifted to the ORGN ticker Friday. Share borrowing in Origin is high, indicating short-sellers may have it in their sights, as well as sustainable plastics peer PureCycle Technologies (PCT). That has shares down to 8 and our warrants to 2.05, putting us down 15.5%. Ree / 10X Capital SPAC (VCVC) We’re down a penny in the SPAC warrants, at 1.79. There’s been little news for the EV chassis maker Ree and the 10X SPAC this week. There’s been decent buying volume in the warrants; shares have been range bound between 9.95 and 10. ReNew Power / RMG II SPAC (RMGB) ReNew announced what its board of directors will look like after the merger. It will consist of six independent directors and four directors from management. Among the independent directors are Robert Mancini, the CEO of RMG II SPAC. Trading is normal – and rangebound – for both shares and warrants. We’re down 11 cents, or 6%, at a recent warrant price of 1.70. Volta Charging / Tortoise 2 SPAC (SNPR) Minor news bits this week, the most interesting of which is that the EV charging company has hired a data scientist, David Klein, who has 15 years of AI research experience. He will lead the build out of demand and customer behavior models. Volta pitches itself as different from other EV charging networks in part because of its promise to find a way to generate revenue from usage data. The warrants have added 20 cents the past week to a recent 2.30, putting us up about 4%. Shares meanwhile, have been largely stagnant around 10. The next issue of SX Greentech Advisor is out next week, Wednesday July 7.
