October 18, 2010
Wall Street Journal Article Sees ‘Bumpy Road’ for EVs
In a series of articles for The Wall Street Journal, writer Michael Ramsey found that excitement over the expected electric vehicles boom exceeds the potential of those vehicles to gain near-term traction in the United States. Despite finding positive user experience in an article profiling frequent Plugincars.com contributer Tom Moloughney, Ramsey sees many reasons for skepticism about whether EVs will actually be successful in the U.S.
The list plug-in drawbacks cited in the articles should be familiar to most fans of the vehicles. (They have a limited range, they’re expensive, they’ll only make sense when gas hits $8 a gallon, etc.)
But the sum of these arguments doesn’t necessarily clash with what most realistic EV enthusiasts and their counterparts within the auto industry have been saying about plug-in adoption for years: “If you build them, the market will eventually come.”
In “Bumpy Road for Electric Cars,” Ramsey cites a Johnson Controls study that found that battery electric vehicles make financial sense for just 3 percent of drivers.
Posted by Connor Dartnell | Tags: Article, Street Journal, Wall Street, Wall Street Journal
Above is a chart of TLT (20 year treasury bond ETF) and in the lower panel is IEI which is the 3-7 year bond fund ETF. As you can see both markets have been trending together perfectly since this bull market began but now we are seeing a divergence take place which in my opinion presents a trading opportunity. IEI is making new highs but TLT is making a lower high and appears to be rolling over. The fact that TLT couldn’t make new highs along with IEI alerts me to the fact that there is selling pressure in TLT. A break below the green line (103.93) in my opinion might be a good place to enter a short position with a protective stop above last week’s high. As always. we’ll see what happens!