'Unimpressed' Nic Chahine On Energy, 'If It Was Going To Rain, It'd Be Cloudy By Now'
- Nic Chahine is a regular Tuesday guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick. Tune in to the daily broadcast live Monday-Friday at 8 a.m. ET here.
- Chahine, an options expert and maven on Benzinga's Marketfy, gave his thoughts on Monday's selloff, solar stocks and oil.
- He also gave his strategy for how to play the market in 2016.
Despite First Solar, Inc. (NASDAQ: FSLR) rallying as much as 7 percent in Tuesday's premarket, Chahine was not impressed. In fact, he remains skeptical of the entire solar industry.
"If it was going to rain, it'd be cloudy by now. We have all the reasons to go solar. They have all the financial backings of all the governments all over the planet, and they still can't make a go of it," he said. "So, a big question mark on the execution, or the need – the market."
First Solar was meeting resistance at $72 as of noon ET.
No Need To Panic
If anyone was concerned about the worst opening day in eight years, Chahine says don't be.
"The good thing about yesterday was we didn't have a follow-up flash crash. Last time this happened in August, we had a flash crash. Nobody talked about that good part of it. Yesterday was just an ordinary pressure-down market."
However, he is watching closely to see if the bulls show up in 2016, saying he'd be concerned with any real downside pressure to breakdown the markets.
As for his 2016 strategy, Chahine said concern over the Chinese and European markets is causing him to be more bearish than usual.
"It doesn't matter what you see, if OPEC comes on and says this or that, they're going to move the price regardless of what the fundamentals say," he said. "The only way I would do it is – buy cheap calls, buy cheap puts.
He cited the lack of a logical rally with the recent turmoil between Saudi Arabia and Iran as proof.
"Logically, I could tell you it should be higher, but I can't tell you it's going to be higher. You saw yesterday: It had all the reasons to rally. Potential war between two giants in the area. Nothing. There's plenty of other tickers to play."
Listen to the interview at 34:15 in the clip below.
Image Credit: Public Domain
Latest Ratings for FSLR
|Oct 2016||Piper Jaffray||Initiates Coverage On||Neutral||Neutral|
|Oct 2016||Goldman Sachs||Downgrades||Buy||Neutral|
|Sep 2016||Williams Capital||Initiates Coverage on||Buy|
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