Petroleum will remain the dominant energy source for the foreseeable future. A one-year chart of CPN shows its strength has coincided with the California power crisis, but it has been extremely weak lately as some of its contracts may be threatened. Notice though that the stochastic seems poised for another upswing. For conservative investors, it may be time to exit, but to me this is not a stock for the trash bin. For speculative investors, this might be a buying opportunity.
Alternative energy is much more speculative.
These stocks have been running up on news of petroleum shortages and market manipulations, as well as on reports of new contracts. They, too, are consolidating after a big run from the April lows, and for several the stochastic is emerging from oversold territory. However, AMSC and IMG have been moving lately thanks to their association with the hot sectors of power generation and health care. The chart shows that AMSC may only be taking a breather before continuing to climb, although it will have to challenge overhead resistance in its 200-day moving average. APTI and SYXI have been relatively stagnant, but IRF has been particularly strong, given that virtually any electrical device would be better with their chips.