The Nasdaq Will Soar with Clean Energy Incentives

| About: PowerShares QQQ (QQQ)

At last, President Obama is showing some alternative energy leadership. The oil industry hates having the status quo interrupted, and this BP (NYSE:BP) fiasco is no exception. The only way to change energy consumption behavior is to have ultra high oil prices or to have an environmental wake up call.

I anticipate the President will be true to his word and take full advantage of this clean energy opportunity in the same way he has reformed the healthcare and financial sectors. The first step will be to formulate and pass an energy bill that rolls back tax breaks to oil companies while introducing new incentives for nuclear, natural gas, solar and wind. It will become next to impossible to drill. New goals will be established to reform fuel requirements for transportation as well as the power grid.

I also anticipate this clean energy revolution will extend far beyond U.S. borders. China has already emerged as the leader in the clean energy sector because of its terrible pollution problem as well as its competitive cost advantages. Investors are always looking to profit from the consequences of political action. We will be watching to see which companies emerge as solid, long term market share growth plays.

As this process unfolds, the most common sense investment strategy is to buy the QQQQ’s. In The Alpha Hunter, I performed a case study called “A Tech Revolution Poised for Takeoff’. The mobile Internet/cloud computing wave is in full effect, the next two waves will come from alternative energy and medical technologies. Soon these three elements of the Nasdaq will be working together to propel economic growth. When this happens, the index will be go on a rally that takes out the highs of ten years ago. From a big picture perspective, tech is the sector of choice for decade 2010. A focus on clean energy gets the Nasdaq one step closer.

Author's Disclosure: long qqqq