5 stocks to save the planet

At Osprey Strategic, we have focused on the energy crisis that is already affecting much of the world. I’ll cover five stocks that are saving the planet here, but we need to add some barbell context.

Saving the planet has been a theme for investment since Queen Elizabeth struggled with smog in London in the 1950s. As 1,000 private jets flew into Davos this week, they met to discuss how to force the underclass to behave better. From the 1950s to today, the craze for urgently saving the planet never gets old. Fossil fuels spent on politics are worthy. Heating, cooking, farming and transportation of the lower class – undignified.

As North America is sucked into the reality that the “cancellation culture” is shutting down existing energy sources to the masses before the replacement is built, it looks like energy trading is about to resume the uptrend.

Uranium, copper, crude oil, gasoline and diesel (heating oil) all had a positive week, while the $SPX closed lower. It’s this relative strength that we like to watch for as we aim to outperform the S&P 500 Index ($SPX). I have dedicated chart lists for fossil fuels and a list to trade the non-fossil fuel energy crisis. Both had a strong week.

Renewable energy

Elon Musk hinted at nuclear power, but until the Davos fossils get more nuclear power on our minds, we’ll likely be harnessing the wind, sun, and tides. For renewable energy, we need a way to store the electricity and allow people to ‘download’ the electricity into their application.

For example, Tesla’s new tractor-trailer requires a 1-megawatt charge, which equates to a 15-hectare solar field every day. If 10 trucks use the electricity from a quarter of the country, we need a way to store that electricity for download the next day. Batteries are a key issue in this discussion and lithium is a key component.

lithium

A key component of these batteries is lithium and Elon said: “Lithium refining is a license to print money“.

Against this backdrop, lithium names appear to be firming up after a multi-month correction. The cleanliness of mining lithium is not part of this article, so don’t shoot the messenger. We’re here to talk stocks! Let’s go through 5 stocks to save the planet and warm the hearts of Davos.

Albemarle

Albemarle has been a popular name in lithium, and the stock is beginning to recover from the recent downtrend. the Stock Charts Technical Rank (SCTR) is moving above 50 again. Relative strength (in purple) has started to improve in 2023. The stock closed back above the 200-day price moving average again. the percentage price oscillator (PPO) is still weak but improving.

Sociedad Quimica Y Minera

SQM has been bouncing back and forth for the past six months, frustrating the buy-and-hold crowd. The difference this time is that the overall market is trying to move higher and that can support these energy-related growth stocks. The stock has broken the downtrend and is likely to move higher. Continued move higher here would at least be a trade to get back to the top of the range, if not further.

Lithium America

Lithium Americas looks like the base is in and maybe it can break above the down sloping trend line. This is a dual listing in Canada and the US, and this is the American version of the listing (LAC in both countries). Notice that the PPO trend is breaking, as is the relative strength trend in purple.

Piedmont lithium

Piedmont already has an SCTR rising above 75, making it more interesting. I like trading commodity-related trades near the lows when they break out, but this one also seems to be preparing to break out to new highs. PPO downtrend is broken. I have placed the trendline on the price at the highest closes on the chart along this trendline. Friday gives a glimpse of the stock’s breakout.

Sigma Lithium

Sigma has an SCTR ranking pinned to the top after the huge boost on the left side of the chart. With a broad consolidation over the past three months, the stock is attempting to break out of the consolidation range. It wouldn’t take much to break the downtrend in relative strength. Volume has been trending down for the past few weeks, so that’s strange.

There we have it. Five stocks to save the planet and trade in renewable energy while all those jets get home safely from Davos! Forgive my Canadian sarcasm!

If you would like more information about what we do at Osprey Strategic, This link provides an overview of how we review the market. Check if it is suitable to help you get more profits in 2023! We have plans starting at $7 for the first month and these are available OspreyStrategic.org.

Best wishes for a profitable 2023!