As I was prowling through the wreckage of momentum stocks in the last few days for my post on Tuesday, “They shoot momentum stocks, don’t they” I noticed one very lonely spot of green.
While stocks such as Nvidia (NVDA) and Twilio (TWLO) were down 11.64% and 12.28, respectively at the close on Tuesday over the prior five trading days and while Apple (AAPL) was down 9.58% and Amazon (AMZN) was off 9.26% during those five trading sessions, shares of SolarEdge Technologies (SEDG) were up 22.71%, even after the 1.94% loss on February 25. The share traded at $108.33 on February 18 and closed on February 25 a $132.93.
If the market in general continues to trend lower, I don’t see SolarEdge riding its big earnings surprise for the fourth quarter much higher. In fact, the stock has already started to slip lower from a February 21 high of $142.17 to the February 25 close at $132.93.
So I will be selling SolarEdge Technologies out of my Jubak Picks Portfolio tomorrow February 26. This is totally a market trend call. I continue to like the potential for this maker of solar inverters but I don’t like the current market much, especially for former momentum leaders.
I guess you can call me “Bearish” in the short run.I will be looking to re-buy SolarEdge when the trend reverses or at least flattens. And to that end I’ll be adding the stock to my Buy-on-the-Dip-o-Meter list of 15 (soon to be 20, but not likely to grow any further from there.)
I added SolarEdge Technologies to that portfolio on April 16, 2018. As of the close on February 25, I had a gain of 150.47% in the shares.