Running out of Fuel
There is no question that the strongest area of the market in the past week or so has been the Fuel Cell Stocks: PLUG, FCEL, BLDP. Their moves were simply not sustainable and the action today (big negative/outside reversals- after a big move) typically suggests it is time for these stocks to pause and take a breath.
Don’t Chase Stocks
This action reinforces the importance of remaining patient and NOT chasing stocks- especially after a big move (up or down). The key now is to wait and see how these stock pullback/digest the recent rally. Then, see if a new favorable risk reward entry point emerges.
The One Constant In The Stock Market
Remember, throughout history- the one constant in markets- is human nature. The stock, market, headline, du jour always changed but Fear and greed never do. Remember, if you don’t learn from history – you are destined to repeat it.
