There are some indications Greentech is putting the brakes on its four-month bear move–primarily, we’re two weeks up off the low Greentech stocks touched in this stretch, which suggests the bears may have run out of steam. That May 12-13 area low was also just about a 50% retracement from the 13-year high we reached in early February, which is classic chart movement that very often signals that the market has reset for a sustained move higher. In the long-run it’s a welcome development–markets need to shake out now and then to make for sustainable bull runs. We also note the uptrends remain intact in the broader markets (S&P 500 and the Nasdaq 100) which can add wind to our sails. Fundamentals for renewables continue to look great–the opening of the Pacific coast to offshore wind this week adds momentum and–eventually–a large contract to turbine providers. We’re also watching closely developments by regional authorities around emissions, which may lay the groundwork for a long-term buy in our upcoming issue of SX Greentech Advisor. The new issue will be out Wednesday June 2. In the near term however, we’re betwixt as investors–the near-term downtrend line for Greentech is still holding and we’re below the 200-day moving average for the sector, which tells us the market still has some effort in turning the ship. That means we’re not rushing to buy. The ratings on our three Real Money Portfolio stocks remain buy since they remain within normal trading ranges since we recommended them. Freeport-McMoRan (FCX) Is down a little bit in recent days on weaker copper prices this week, but the outlook remains strong for the metal. Most immediately, there’s the specter of a miner strike in Chile, which would make already tight supplies tighter. Shares have traded in a tight range since we added shares to the portfolio last week. BUY Steel Dynamics (STLD) Company co-founder Keith Busse stepped down as Chairman of the Board. Busse who is 77, had previously indicated he wanted to step down come the annual meeting, which was held last week. Busse remains a director, and the CEO, Mark Millett, takes on the additional role of Chairman. The company also announced a 26-cents-per-share dividend to be paid to shareholders of record as of June 30. Provided we hold onto shares that long, that’s a nice 0.43% yield on our investment to gather up–far better than Treasury Bills or high-yield savings accounts. BUY Trex (TREX) Shares appear to be getting stretched to the downside and we should start to see buyers come in again soon. Lumber, Trex’s main competitor, remains at record high prices which should spark new customers to take a look at its composite decking, made of recycled thin-film plastics and wood dust. The company is marketing a recent addition, Trex Enhance Basics, which are $1.75 a linear foot, basically on par with wood decking (around $1.60 these days). We’re loosening the sell-stop from around 93 to around 87 to make room for the possibility shares may still ease off before turning higher again. The 200-day average, a level we really watch for support, sits at 86. BUY
