SolarCity is another Elon play besides Tesla ($TSLA, and hopefully soon SpaceX).

 

This isn't the best stock fundamentally but funds are pouring into it left and right on the basis of either $TSLA euphoria sympathism or the fact they do have a very interesting business model and also that they are into electric car charging via acquisition and likely, Tesla's influence. Also unlike most solar companies they are more into designing and leasing solar power systems, rather than competing to eke out mW after mW from the latest panel technology. They are definitely providing something different for the clean energy market.

 

Technically this looks a  lot like my $EVR buy (see last blog post), although more pronounced. The rather long-term sideways boring motion with a possible slight uptrend, followed by a snap up in price, in this case a 150% wild snap-up that creates the volatility contraction pattern (VCP) I plan on exploiting for profit.

 

This VCP contracts 38%, then 14% finally 7%, accompanied by the usual dry up in volume. I can tell you every time I see this pattern I see a Chinese dragon: the tail is the left side of the chart, followed by the run-up to the first contraction which is the eye of the dragon, followed by the snout. In this case, I buy the smoke coming out the nostrils at 42.80, or the last contraction.

 

Indeed, yesterday morning $SCTY moved during market hours in immense volume, in which I bought a slice at 43.46. It finished the day at 45.15 with volume 88% above average to bag a 4% gain. $SCTY was up 8.2% for the day and up another 2.5% premarket this morning.

 

Besides $EVR and $SCTY, I see other possible such power plays forming: $RH, $XONE, $FSLR.

 

$FENG and $MKTG are also similar with a run up but formed more flat bases. $FENG broke out 3 days ago but is still buy-able. $MKTG is going to gap up this morning after a pre-market breakout this morning.