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TAN

(5 posts)
  • Started 5 months ago by roughbert
  • Latest reply from mktlines

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  1. roughbert
    Member

    Any idea what happened to TAN on Friday? are we saw-toothing or is it the start of a big move? I'm on the edge of my seat - and very close to my stop loss!

    Posted 5 months ago #

  2. Donato
    Member

    Hi Rough . . .
    The short answer to your question is that, generally speaking, TAN follows the price of oil. So if you think the price of oil is going down, then sell TAN now. If you think oil is going up, then hold onto TAN.

    A bit more of an in depth answer might consist of first asking wether you base your decisions on fundamentals or technical's. As well as how long your time horizons are; put another way . . . are you a day trader (obviously not, since you're still holding it), a swing trader, a position trader, or an investor (buy and hold)?

    From a fundamental stand point, and if your are an investor, it's a keeper. Now on to the technical's . . .

    On a bigger view of things and from a technical stand point, (generally speaking of course) all of the markets and their sectors are pushing up against resistance, so you are going to continue to see pull backs everywhere. But what is really interesting to me is the volume, TAN is attracting quite a lot of attention. More attention than it EVER has had before. Thursday, the day before you referenced in your question, was the single largest volume trading day in the history of the fund!

    The trend up is something I like, nice and gradual with decent (healthy) pullbacks, and it still hasn't pushed down through it's trend line starting from the low last early March. Ten bucks took a bit to break through, and you may see a pullback to that range (but then it will surge up when oil jumps up). The next target is fourteen or fifteen bucks, from last October and November, and you will most likely see some problems around that price range. Once it breaks through that area of consolidation, you won't want to sell then, because twenty bucks a share will be right on the horizon . . .

    TAN is only one of two securities I have bought with trading less than 1,000,000 shares a day (the other being DBB). When I saw trading over three million shares on that Thursday, I couldn't believe my eyes. For what it is worth, I'm keeping my shares. Oh, and by the way, expect to see a lot of opening gaps coming up in the future, some of those gaps will make you feel like a king, and others will make you feel like you got punched in the stomach!

    Also remember, TAN is a global solar fund. And as such, it will also provide a measure of protection against inflation and all the screwed up decisions our current administration is making to devalue our dollar.

    Posted 5 months ago #

  3. roughbert
    Member

    Donato, thanks for that well considered reply. I am a recent convert to making money out of equities, although for several years I have lost money in the same place, mostly through carelessness. The "recovery" has certainly been my friend. I bought TAN recently looking for diversification - not having made the connection with the price of oil. I ran scared from crude when I saw the price of crude and the short crude ETF both rising one morning. Didn't know what to make of that, so I returned to cash! Then bought TAN. All part of the learning process.

    Posted 5 months ago #

  4. Donato
    Member

    POST SCRIPT

    There is an interesting ratio I watch, and once it gets to a certain point then drops below, there is an 80 to 90% chance the market will tank. Sometimes the market corrects quickly after tanking, other times not. Sometimes it only dips instead of tanking. The point being that it is getting very close to that "certain point". So you may see TAN loose a lot of value in the near future (as in days) (along with the market as a whole), but if you're expecting it, it's a lot easier to deal with mentally.

    Those are buying opportunities. Plan for them. Nobody knows what the markets will do, but you can have strategies in place to optimize your investments. Like decreasing the stop to 50% of your shares, then buying back in at $10. It really comes down to how active you want to be (or can be) and what your time horizon is.

    PPS
    UNG is the one I've been loading up on recently!

    Posted 5 months ago #

  5. mktlines
    Member

    All time technical chart of Global Solar Index ETF TAN : TAN - Solar ETF

    Posted 1 month ago #

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