Pecking Away

A key component of summer trading in the markets is staying methodical in your approach, since oftentimes there will be plenty of drifting action which frustrates even the most explosive of chart setups and sector rotations. We seem to have a good deal of that phenomenon this summer, too, albeit with the indices at or not far from all-time highs. 

Still, on a morning like this with the Nasdaq gapping down, we want to continue to peck away at the rotations taking place if bulls are to avoid any type of mid-summer drawdown in equities as a whole. As we speak, for example, the small caps in the IWM (ETF for the Russell 2000 Index) are green and trying to do a fair amount of heavy lifting to stave off the Nasdaq selling. 

But an initial upside reversal in Sunrun (RUN), an up-and-coming domestic solar play, has my interest a bit more at the moment. The reason for this is due to what appears to be changing of the guard in the solar sector, as the likes of well-known FSLR, even SPWR, have fallen by the wayside this year while RUN has emerged and taken share. 

Moreover, Vivint Solar, with earnings August 7th, is another young whippersnapper in the domestic solar space which is on the come. 

On the VSLR daily chart, zoomed out and updated below, the stock may be ripe for a fresh long entry after the latest breakout attempt came down to "squat" in its prior range after previously breaking the outlined major inverse head and shoulders bottom to the upside. 

This type of action is fairly standard and can de considered bullish, especially with resumption of strength back over $5.35/$5.40.