PowerShares WilderHill Clean Energy (PBW)

Company

PBW 1-year chart PBW 1-year chart

"The PowerShares WilderHill Clean Energy Portfolio (Fund) seeks to replicate, before fees and expenses, the WilderHill Clean Energy Index, which is designed to deliver capital appreciation through the selection of companies that focus on greener and generally renewable sources of energy and technologies that facilitate cleaner energy." (company website)

PBW 1-year chart
PBW 6-month chart

Buy

25-Jan-08. Last year I left a lot of money on the table by holding onto PBW too long, but I was looking for another short-term bottom to buy in again. I'm thinking that bottom has just occurred. PBW got beaten down (like almost every other stock) in the early volatile days of 2008, but it looks like support at the 200-day moving average has held.

  • Price momentum (PPO) — very negative after nearly a month of sell-offs
  • Relative strength (RSI) — turning up again after hitting 30
  • Trend (ADX) — very strong; although selling pressure (-DI) is much greater than buying pressure (+DI), each has reversed direction in the last few days
  • Volume — sustained heavier-than-normal volume for a month; it seems likely that most of the selling has already occurred

Based on technical analysis, MarketEdge calls PBW an "avoid" in a "strong downward trend."

Sell

gain Bottom line
2%

15-May-08. I sold this lot today at a small profit to free up some capital for other trades. I still have one more lot of PBW bought at a lower price.