Looking for Bullish Stocks in a Bear Market

OK I always say it is better to go with the trend and at this point in time the trend is a bear market; however for those of you not capable of thinking in Bear terms and just want to look for stocks that go up I have some good news. In every Bear market there are always groups of stocks and even sectors that do well. This bear market is no exception. In this market alternative energy is a great sector to be bullish.

Yesterday the US Senate approved tax credits for producers of alternative energy. So start looking for alternative energy stocks that are into wind and/or solar power. Case in point, right now I have a friend who is a plant manager for a windmill company. They build the gears for the giant windmills that you see producing wind power in large quantities. He currently has a major problem and has been working weekends and long hours to try and resolve the problem. The actual problem? They can not produce the gears fast enough! They have more demand than what they can currently supply and they are beefing up production on another plant modelling the plant my friend is currently managing to help support demand. I would say that is a good problem to have!

So in most cases for credit spreads I would always say follow the market; however in some cases you may want to follow the trend in the sector the company is in. One example would be FSLR (First Solar), the stock has been in a channel for the past five months and it did drop with the rest of the market this month, but it has regained some traction and rebounded nicely. The fundamentals are strong and it is in a good field of solar production. The current weak support is around 200 and the lowest it has been this month is 186. So I would place a Bull Put Credit spread trade below 200. Maybe an October credit spread at the 180 level creating a bull put spread for around .50 or 11% in the next three weeks.

bear market, bullish stocks, credit spread, FSLR