You Adapt, Evolve, Compete, or Die

An extremely rare interview on CNBC this morning with the legendary trader and hedge fund investor, Paul Tudor Jones, had me recalling his many famous quotes regarding markets. One of my favorite ones is, “You adapt, evolve, compete or die," implying that traders must constantly be willing to change their minds to keep up with ever-changing markets.

On the one hand, you might argue that markets are the same over time in the sense that they are constantly changing, to paraphrase Ed Seykota. But on the other hand Paul Tudor Jones hits the nail on the head in terms of not stagnating.

Applying those theories to the solar sector, the popular First Solar has fallen by the wayside over the last month or so. FSLR had an $81 handle back in late-April but dove to a recent low of $51.42, all the while SunRun has emerged as a new school solar leader. RUN may have been under-the-radar of most traders who naturally assumed FSLR would participate if not lead any solar rally.

But RUN has played "hard to get" for eager new longs, as emerging leaders often do. On that note, while we patiently wait for a proper long entry on RUN, we ought to keep an eye on another overlooked domestic solar. 

Vivint Solar, below on its weekly chart, figures to be in play to confirm the outlined inverse head and shoulders bottoming formation over $4.20 at a minimum. Much like RUN, VSLR is also an up-and-coming residential solar installation play. And much like RUN, plenty of traders will not see a move coming as they perhaps are still living in the past and focusing on FSLR, yet to evolve and adapt to the current market.