We've currently got low float, low cap names in the battery/alternative energy space running.
And they sure are running hot.
BLDP, FCEL, PLUG to name a few. Have a look at the chart of PLUG:
Here is where it gets crazy.
Total amount of shares float in PLUG is 104 million. Yesterday, the stock volume was twice that.
This heavy volume feels like daytraders and investors alike jamming orders in without much liquidity to take them in.
So what does this feel like?
Back in mid-2009 there was a play on super small cap chinese ag names. Stuff like CAGC, HOGS, SEED, and FEED (now FEED.Q). They were amazing traders and the upside momentum was unstoppable.
...until it stopped.
This is the point where I come in and say it's not different this time, and these battery stocks all have the signs of blowoff tops.
And before the arguments come in from the "investors"...
Remember your timeframe.
You can be bullish long term and bearish short term. In fact, most of the arguments I've seen on social media between bulls and bears have been a miscommunication of what timeframe they're looking at.
Yes, it's very possible that these names are the wave of the future, and next-gen power technology will help get a smarter power grid and less reliance on "dirty" fuel.
But when a stock has seen more price appreciation than the Bitcoin rally, you may want to reconsider the risk-reward to the long side here.