Sustainable InfrastructureThis post is in response to the @TradingView long short competition. For the competition, Trading View asked users for their best pair trade idea for the given market conditions.
My entry is long HASI and short HESS.
Many of you may already be familiar with HESS corporation.
HESS is an oil company that engages in the exploration, development, production, transportation, purchase & sale of crude oil. Hess has production operations located primarily in the United States, but also it pumps fossil fuels out of Guyana, Thailand, and Malaysia. I am short HESS because the price action is forming an onimous shooting star candle on the quarterly chart. Furthermore, this bearish candle is occurring right at the Fibonacci high created right before the Great Recession.
HESS is also the company that makes those adorable little toy trucks to instill the love of fossil fuels in the public from a very young age:
Fewer of you may be familiar with HASI or Hannon Armstrong Sustainable Infrastructure Capital.
HASI is the first U.S. public company solely dedicated to investments in climate solutions. It provides capital for leading companies in energy efficiency, renewable energy, and other sustainable infrastructure markets. Importantly, HASI provides capital for real estate to be used for sustainable infrastructure development. Website: www.hannonarmstrong.com
HASI currently has more than $9 billion in managed assets. Its core purpose is to make climate positive investments with superior risk-adjusted returns. I am long HASI because its price has been growing exponentially since its inception. Despite its recent pullback, the quarterly candle was cleanly supported by the 20 EMA. This is a great opportunity to go long.
I have chosen HASI and HESS for another important reason. Their ratio reflects the insurmountable challenge that climate change poses.
According to the Global Commission on the Economy and Climate, the world will have to invest $90 trillion in sustainable infrastructure by 2030 to combat climate change.
To put that into perspective, investment in sustainable infrastructure companies like HASI will need to increase hundredfolds, if not thousandfolds or more, relative to investment in fossil fuel exploration and production companies like HESS, if we are to successfully tackle climate change.
This chart shows just how tremendous this magnitude of change in capitalization must be. Even with logarithmic adjustment, the growth curve still looks exponential.
I chose a yearly chart to illustrate how few candlesticks we have left to increase the magnitude of this ratio in order to successfully combat climate change.
Just 8 candlesticks are left until 2030...
HASI trade ideas
HASIMID-TERM: Near horizontal support and also near a potential breakout of a downsloping channel, 4hr hidden bullish divergence and daily bullish convergence. (not financial advice)
Let the Gaps closed first before buyingThis is a stock that I am banging on based on President Joe Biden on his push for Renewable Energy. It is displaying a very strong bullish trend right now and I expect it to continue moving forward.
Currently, it is undergoing a healthy pullback so I will wait patiently for a few gaps to be closed before establishing a support level and bullish signals to go long on this stock.
Cup and HandleInfrastructure seems to be booming
Also a play on solar
NV and OBV are high
Short interest is a bit higher than I expected
No rising wedges in yearly chart
Monthly candle indicates a pullback soon. S noted at gap under price. Weekly candle is a doji
Hannon Armstrong Sustainable Infrastructure Capital, Inc. provides capital and services to the energy efficiency, renewable energy, and other sustainable infrastructure markets in the United States. The company's projects include energy efficiency projects that reduce a building's or facility's energy usage or cost through the use of solar generation, including heating, ventilation, and air conditioning systems, as well as lighting, energy controls, roofs, windows, building shells, and/or combined heat and power systems. It also focuses in the areas of grid connected projects that deploy cleaner energy sources, such as solar and wind to generate power; and other sustainable infrastructure projects, including upgraded transmission or distribution systems, water and storm water infrastructures, and seismic retrofits and other projects. The company qualifies as a real estate investment trust for U.S. federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Hannon Armstrong Sustainable Infrastructure Capital, Inc. was founded in 1981 and is headquartered in Annapolis, Maryland.
Just an observation
V bottom REIT May not be your thing. I have owned this since the bottom and just broke out today
In reality, I am really more of a bottom fisher than a break out trader because I like support close by
Hannon Armstrong Sustainable Infrastructure Capital, Inc. provides capital and services to the energy efficiency, renewable energy, and other sustainable infrastructure markets in the United States. The company's projects include energy efficiency projects that reduce a building's or facility's energy usage or cost through the use of solar generation, including heating, ventilation, and air conditioning systems, as well as lighting, energy controls, roofs, windows, building shells, and/or combined heat and power systems. It also focuses in the areas of grid connected projects that deploy cleaner energy sources, such as solar and wind to generate power; and other sustainable infrastructure projects, including upgraded transmission or distribution systems, water and storm water infrastructures, and seismic retrofits and other projects. The company qualifies as a real estate investment trust for U.S. federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Hannon Armstrong Sustainable Infrastructure Capital, Inc. was founded in 1981 and is headquartered in Annapolis, Maryland.
Not a recommendation
HASI LONG GREAT DIV STOCK EARNINGS 7/30-08/03Hannon Armstrong Sustainable Infrastructure Capital, Inc. engages in focusing on solutions that reduce carbon emissions and increase resilience to climate change by providing capital and specialized expertise to companies in the energy efficiency, renewable energy and other sustainable infrastructure markets. The company was founded on November 7, 2012 and is headquartered in Annapolis, MD.
HASI IS WHAT MOST CALL A GROWTH STOCK, IT ALSO PAYS GREAT DIV. EARNINGS ARE LISTED AS COMING OUT BETWEEN JULY 30 AND AUGUST 3. HASI IS CURRENTLY TRADING AT $34.28. GO LONG AND BUY SOME SHARES TO GET GROWTH AND DIV.
V BottomHASI pays a good dividend and has room to grow. The stock seems to be hanging out right now in consolidation mode and is filling a gap formed in the corona crash. Negative volume is high but PVT is negative. This stock is not part of the "in crowd" right now (o:
V Bottom and Breakout is over prior high at 40
I bought this for the dividend in my IRA at the bottom, but it has a ways to go for a true breakout if and when it breaks out. My stop is at 23 for now.
My hypothetical targets (after breakout) are 55 to 60
then 71 to 80
The company's projects include energy efficiency projects that reduce a building's or facility's energy usage or cost through the use of solar generation, including heating, ventilation, and air conditioning systems, as well as lighting, energy controls, roofs, windows, building shells, and/or combined heat and power systems
Trade safely
Let's Hope this Range Bound is not Sustainable!What I see...
+ Side way move within channel
+ Narrow Bollinger Band
+ Support from both 10 and 50MA
+ MACD is bullish but flat
- RSI is turning south
- Today's close is below 10ma
- Hugh volume from last week on a red bar
What I setup...
+ Long entry above channel
- Stop is below the channel
+ Target is at 39
:: Duration - 3 to 10 sessions
* Comments are Likes are appreciated; New Subscribers are Strong! **
Ray's question Earning Q1 2019HASI has been enjoying a big linear up trend the past couple of weeks. Given a better than expected earnings report and the solid performance of the company I would expect a surge up to set a new ATH. Once reached (and based on past events) I could see a conservative retrace of - 24 %.
Therefore selling at 33.00 USD and re-buying (or buying) at 25.50 USD would be a reasonable possibility. If their is not a strong rally then this is the ATH and a retrace will begin to start manifesting with 25.40, 24.85 and 23.30 as key support levels.
HASI: How To Chart Using MEST = Momentum, Energy, Space, TimeTwo days ago I published a chart for-HASI. In my opinion, the market is moving this stock higher.
Here are several reasons why I think this is true.
The Alligator: How it works . The Alligator is a collection of three moving averages, which are called the Lips, the Teeth and the Jaw and colored blue, golden, and black.
The idea of the trading strategy is to catch those big trending movements that occur for less than 40% of all time. Such moments can be identified by looking at the Alligator Lines. Usually, before a big move happens, the price moves in a tight range and intertwines with the Alligator Lines. This is called a "sleeping alligator" because it is so quiet. Then it explodes into a big move. The price starts moving away from the Alligator, and the Alligator Lines are opening. This phase is dubbed the "hungry alligator" because it looks like an alligator wakes up from sleep and opens its mouth (distance between the lines) to chase the little fish (price bar) for breakfast.
The Three Wise Men Now onto the entry rules, i.e. the Three Wise Men. In order to understand them, you must have the following indicators on your charts: 1. Alligator (as described above). This is wise man number one. 2. Awesome Oscillator (phase energy, lower indicator above the chart). This is wise man number two. 3. Fractals (up and down arrows). This is the third wise man.
Awesome Oscillator Definition and Facts:
1. The difference between a 5-period and 34-period median price moving average, which is actually the 5-34 MACD histogram.(Simple moving average better than EMA)
2. Bars that are higher than the previous one are painted green, otherwise painted red.
Entry and Exit (long) :
1. Ideally it is preceded by a bullish divergence bar, or a-morningstar candlestick or else must be preceded by a down fractal.
2. Buy when the AO (phase energy bars) shows three consecutive green bars.
3. Stop begins at the bottom the bullish divergence bar or down fractal, then gradually trail up to the latest 3-5 bars low, or when a bearish divergence bar appears.
4. Opposite for short entry.
Comments: The AO is more than just a provider of entry signals. The best use of it is to point out divergence in a trend. The divergence is the difference between price and momentum direction. For example, when a trend is showing higher highs, but the bars in the AO have lower highs, this is a case of divergence, and usually an end of trend will follow soon.
The Third Wise Man: The Fractal. 1. An up fractal is a high of a bar preceded by 2 lower highs and followed by 2 lower highs. 2. Signal of an up fractal is only valid if it is above the Alligator lines. 3. Vice versa for a down fractal.
Entry and Exit (long): 1. Buy on breakout of a valid up fractal (above Alligator).
2. Stop begins at the bottom of the bullish divergence bar or down fractal, then gradually trail up to the latest 3-5 bars low, or when a bearish divergence bar appears. 3. Opposite for short entry.
Comments: The fractal is actually a breakout strategy on previous high or low. According to Bill Williams, each fractal is an end of an Elliot Wave, and a breakthrough of each fractal marks a new impulsive wave, so that we are able to trade that wave even without knowing what wave we are in.
Unfortunately - I am running out of room for this entry. On the chart above for-HASI, the MEST-positives are an up Fractal, three green up bars for phase energy (AO), and the alligator is feeding in the uptrend. Other trading positives , the Ichimoku Cloud is rising, the 89 day moving average is rising, and the Ichimoku Cloud has a green border. My advice, pay attention to-MEST (momentum, energy, time, space). Your wins will be big, your losses small.
Good luck to you in all your trades. Don.
HASI: Strong Uptrend Continues, Multiple Buy SignalsHASI-Hannon Armstrong Sustainable Infrastructure Capital, Inc. provides debt and equity financing to the energy efficiency and renewable energy markets. The Company originates its transactions primarily through programmatic finance relationships with global energy service companies. It also originates transactions with renewable energy manufacturers, developers and operators, and other companies, which own and operate renewable energy projects, including various utility companies of the United States.
HASI-is in a strong uptrend. It has issued multiple buy signals via fractals.
A buy fractal (green arrow) is a series of five consecutive bars where the highest high is preceded by two lower
highs and is followed by two lower highs.
The fractal is important. It is the first dimension of your trade.
If the Alligator is not asleep, the market is either up-trending or down-trending:
• if the price is above the Alligator's mouth then it's an uptrend;
• if the price is below the Alligator's mouth then it's a downtrend.
The Alligator also helps to determine the character of the Elliot waves:
• if the price is outside the Alligator's mouth the wave is impulsive;
• if the price is inside the Alligator's mouth the wave is corrective.
Why trade the alligator ?
The Alligator acts like a compass which keeps your trading in the right
direction. The Alligator helps you spot a real trend and stay out of range-bound trading.
If all three lines of the alligator (jaws, lips, teeth) are intertwined, the Alligator is asleep and the market is range-bound. The longer it sleeps, the hungrier it gets. When it wakes up from a long sleep it chases the price much farther, therefore price movements are usually much stronger. When the Alligator is asleep, stay alert. Once the Alligator wakes up, it opens its mouth (jaws, lips, teeth) and starts hunting. Having eaten enough, it goes to sleep again (jaws, lips, teeth) converge, so it's time to take profits.
Other technical strengths :
The lower indicator above the chart is the phase energy, and this turned positive months ago.
The gray indicator above this is the Coppock Curve, and this remained above its zero line.
The Ichimoku Cloud is rising. Also note the Cloud's black conversion line. This has been a reliable support point.
The 89 day moving average is rising. The Ichimoku Cloud has a green border. This indicates a stronger trend.
So, my advice to to stay long-HASI.
One final tip no matter what techniques you use......
Remember, rewards from trading and investing are determined by human psychology. Trading is a psychological challenge, the way of self-realization and self-knowledge, so the best way to become successful is to find your trading self, to get to know it better and to follow it no matter what.
Thus, there are two significant aspects: your own self-knowledge and your understanding of the market structure.
Let others panic. You stay cool.
Good luck to you in all your trades. Don.
Hannon Armstrong: Strong Earnings & Strong UptrendStrong earnings and strong uptrend, a combination that is hard to beat.
Hannon Armstrong Sustainable Infrastructure Capital, Inc.-HASI-is a real estate investment trust. The Company provides debt and equity financing for infrastructure projects. Its infrastructure projects include Energy Efficiency Projects, Clean Energy Projects and Other Sustainable Infrastructure Projects. The company serves federal, state and local governments, commercial, utility, and industrial markets. Hannon Armstrong Sustainable Infrastructure Capital, Inc. is based in Annapolis, Maryland.
Let's look at my TRADE-MAP approach:
TRADE = 1. T : Time and space (Fractals); 2. R : Repeating Cycles; 3. A : Advancing Trend; 4. D : Declining Trend; 5. E : Energy in Phase Forces.
.....MAP = 6. M : Momentum and Velocity; 7. A : Analysis of Structure; 8. P : Price Performance.
When I mention "Don's Top Ten Technicals", I use the elements of the "TRADE-MAP" approach:
1. The Ichimoku Cloud is rising as well as the 89 day moving average . 2. Prices have risen FAR above the cloud. 3. Prices are trading above the thick red Ichimoku Cloud Conversion line.
4. The thick red conversion line is also rising. 5. The thick black line is the Ki jun-Sen baseline of the Ichimoku Cloud , which is rising and above the cloud.
6. The indicator on the top of the page is RSI / Stochastic , and this is strong. 7. The top middle indicator is vortex and it is strong (green over red), but the two are together as the stock has consolidated. 8. The Top (bar-type) indicator measures the "phase energy" of the stock , and this is STRONG. It has been mostly ABOVE THE ZERO LINE since February, indicating buying pressure. 9. The green fractal arrows are up (not shown).
10. Look to the far right on the chart, around $23.50. You will note a yellowish line on top (lips), with black dots below (teeth), and a blue line (jaw) below the black dots. Now, all three are rising, correct? This is where I ask you to use your imagination and envision these three items as the "separated jaws of a feeding alligator". This is a positive indication because the alligator is FEEDING in the uptrend.
This is a very solid stock with a strong uptrend.
My advice is to accumulate on weakness. Remember: The trend is your friend.
Good luck to you. Don.
HASI - GOOD OPPORTUNITY WITH HIGH YIELDLooking to add this stock to my portfolio in order to diversify, spread the risk and get more income from dividends.
With this stock we can expect at the moment a dividend of 5.71% , pretty good if we see that is also looking to go up both fundamentally and techinically.
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God Bless You All.
