Aspen Aerogels (ASPN) triggered our sell-stop. Let’s take our profits and sell today.
ASPN triggered our sell-stop of ‘under 48’ and price technicals suggest more downside could be coming. A test of support at 36 is not out of the question. Considering the current market conditions, better to exit with a slight profit.
Greentech as a sector broke its six-month-long floor yesterday on dashed Build Back Better bill hopes. Charting breakouts of trading ranges, like the one we’ve been in, suggest more difficult conditions are ahead in the near-term. More concerning is the weakness in the broad market: The S&P 500 is just about 1% from testing the neckline of a double top. If support of the neckline is broken, a further 200-point drop (about 4.5%) to the next support, the 4,300 area of the 200-day moving average, is likely.
That move isn’t set in stone, but it would create very difficult short-term conditions for Greentech growth stocks.
Please let me know if you have any questions or comments. You can reach me at brendan@cabot.net.