Helping Self-Directed Investors Succeed Blog - Renewed Energy For Alternates

Renewed Energy For Alternates

January 14th, 2013

Alternative Energy ETFS - especially those that focus on Clean Energy - have been the forgotten ones in recent years despite global pronouncements about such energy sources being the most imperative option to keep Mother Earth safe.

But, in recent months, a renewed spring in their step cannot be oblivious to market watchers.

Take for instance ICLN - iShares Global Clean Energy Index Fund - which hit almost rock bottom in November 2012 and since then has climbed over 25%. PBD - PowerShares Global Clean Energy Portfolio - has also moved in lockstep with ICLN.

President Obama's re-election appears to have been a fundamental catalyst that injected new life to these ETFS despite various issues raised about his administration's flaws in dealing with some solar energy companies. The fundamental vision of Obama remains intact which came loud and clear during the presidential debates.

In the US, subsidies have been keeping this fledgling sector afloat and there was a real danger of scrapping of such subsidies on a Republican takeover. Recent announcements about Wind Energy subsidies to continue have been a springboard for ETFS like FAN - First Trust Global Wind Energy ETF.

While Clean Energy is recently on the rebound, Coal Energy has been relegated to the back burner by the Obama administration. Coal stocks were certainly burnt over these years. The effect of this was felt on KOL - Market Vectors Coal ETF - which has been in consolidation mode since June 2012. The New Year did cause a technical shift for this ETF as it broke above this consolidation range. Last week it dropped back to its consolidation range but it remains above key SMA levels.

All said, technical traders may want to add alternative energy space ETFS to their watch list in light of these recent developments.

Good Luck and Happy Trading!

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