By: Chris Rowe — November 17, 2020
If these 5 stocks don't quadruple, I'll be shocked
Sure, it's fun to own stock in a company that's making exciting technological breakthroughs or revolutionizing medicine.
But it's the story of the sector that's going to have the biggest influence on your portfolio value.
Stocks will do what their peer group does. Take a look at the 5 stocks in the "Alternative Energy Sector" did over the past year.
And notice the similarities in the historical price patterns. They look the same. And they all look like they're going to go much much higher in the next year.
Each of theses stocks could be super volatile. They could get cut in half...
That said, I'd be shocked if all 5 of these don't quadruple over time.
We have RUN...
And finally, SUNW.
All 5 made enormous gains higher already - ranging from about 200% to 1,000% - and with the massive increase in volume.
It's safe to say these stocks have a lot more upside ahead of them.
This narrow industry group is like the adopted child of the major "Energy sector".
This general sector can be broken down into:
- "Oil & Coal"
- "Oil Service"
- "Energy-Other" (Alternative energy like solar, wind, water, etc).
The more narrow "Energy Other" sector has been absolutely gunning higher for years while the rest of the energy sector has been in a nearly steady decline.
Oil & Coal stocks, and Oil Service stocks had been in steady decline since 2014 (dark blue), with intermediate-term rallies along the way.
But over the last week, I could not believe my eyes, when I saw how the 11 major S&P sector ETFs performed since the beginning of last week (since the election).
The Major Energy Sector (XLE) is up 26.10% in just nine days, which would be impressive for the very strong Tech sector. But to see XLE gain a whopping 26.10% while the second place winner trailed behind with a 10.54% gain can not be ignored.
We just might be witnessing a major bullish reversal of a 6.5-year downtrend.
The move is significant because the first week of trading activity after the presidential election is more telling than the week of stock market trading.
Watching how the big institutions invest and then doing the same, is truly the most effective way to play the stock market. And we've just watching institutions gobble up the major energy sector.
The reason it's so easy to profit by following these large investors is their buying activity creates trends that continue for several last years.
I don't like the idea of buying stocks or groups that have been in decline but aggressive investors may want to start buying into XLE (Major Energy) on a pullback.
The Energy Other sector, which is one of the 41 sub-sectors that my trading platform tracks, has a great chance of being one of the best performing sub-sectors of 2021.
My platform, Sector Prophets Pro, gave bullish signals throughout the year when institutional investors increased their position sizes.
Each time the system alerted me and its subscribers, it recommended the three strongest Energy Other sector ETFs and the three strongest stocks in the group.
And it just gave another signal with six more specific recommendations.
I've indicated in the chart, below, times in the past when Sector Prophets gave the same type of signal.
The various ETFs it recommended with each of these alerts (and ETFs you can use to trade the sector today) included:
Invesco Solar ETF (TAN)
First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN)
Invesco WilderHill Clean Energy ETF (PBW)
SPDR Kensho Clean Power ETF (CNRG)
Invesco Global Clean Energy ETF (PBD)
VanEck Vectors Low Carbon Energy ETF (SMOG)
I've given you 5 stocks in the sector that I think will quadruple. But to expand that list, here are the top ten Energy Other stocks that my platform gave me alerts on.
Some of the stocks are significantly higher than the alert date, but I still think all of these stocks are great stocks to own, whether they're up, down or even.
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