For long-term investors, the volatility can cause early baldness.

For short-term traders, on the other hand, it is a dream come true. There are investment opportunities all over the place.

One of the biggest movers in the pre-vote hype is Broadwind Energy (NASDAQ:BWEN), a growing player in the nation’s wind-energy industry. As a maker of turbine gearing, the company stands to see substantial growth if the sector finds the legs so many politicians are trying to force.

As I write, shares of the billion-dollar company are up by more than 35%. The stock closed the day yesterday at $8.23 and is currently trading for $11.23.

With no material news coming from Broadwind executives today to explain the massive surge in valuation, investors are left wondering what to think.

Is the action due to Pelosi’s impending vote? Or is there something bigger on the way?

I will save the pain

While only time will tell for certain, my money is on the speculative bet. I have studied all sorts of merger announcements, acquisition deals and contract releases throughout my career. There are almost always “tells” leading up to a big news event, but rarely are they as obvious as today’s.

Insider buying is a great way to end up in court and a 35% price spike typically catches a few regulatory eyes. Insiders are not responsible for the extra million or so shares exchanging hands today.

It is speculative money.

If you are looking to take advantage of the day’s action, the short side offers the strongest profit opportunity, especially if today’s vote is a no go.

As the markets digest the action and realize the nation’s economic situation is not going to change overnight, Broadwind will give up much of today’s gains, even if only temporarily.

Options investors would be smart to investigate some short-term puts, while folks that like to stick with the equity side of things should think about borrowing shares today and paying for them later.

This is a strong short opportunity. If the legislation fails, it will look even better.

I like wind power, but the speculation throughout the industry is far too overdone.

Source: What’s with Broadwind Energy Today?

According to information collected by Chevron, worldwide investments in renewable and alternate fuels have increased nearly fourfold since 2004. In the past 12 months investors have poured nearly $150 billion into the biofuel sector. Biofuel volume will increase by about 45% by 2030 to meet future demand, but still will represent only about 10% of the total energy mix. This 10% is about equal to the current share. Relative quantities might not change much because overall global demand is growing so quickly.

Robertson added, “Energy efficiency is the most immediate and important action that each of us can take to start to reduce energy prices. The United States must become a nation of energy savers. In short, we need a ‘Made in America’ solution enabled by everything from human ingenuity to ’smart’ buildings to advanced vehicles and transportation systems. Markets are indicating that consumers are already taking action. You and your committee have a critical role to play to engage the US public and put the United States at the forefront of responsible energy use.”

Until Next Time…

Byron

Note: Byron King is a frequent contributor to the free e-letter Whiskey & Gunpowder. To receive daily insights into energy, oil, commodities and other natural resources sign up here!