We’re standing on the tracks and the train is coming, says Wayne Mulligan. But that’s no reason for investors to not play the market. Wayne says going long on discount retailers is the best way to profit from low consumer confidence. And with fuel prices on an unsustainable uptrend, investors should look to the alternative energy market. Meanwhile, the auto industry is facing ruin. A clear opportunity for shorting, says Wayne.

He made his fortune as an oilman, but yesterday (Tuesday) legendary investor T. Boone Pickens unveiled a plan to cut U.S. dependence on foreign oil through the power of alternatives such as wind and natural gas.

Editor’s Note: It seems energy is on the tip of everyone’s tongue again today. If it’s not the debate about where oil prices are heading next, it’s fresh concern over our long-term energy future. Byron King’s energy insider says we cannot lose anymore time in developing a plan for future power supplies. Whether its finding new oil reserves or shifting dependence to alternative sources, it will take decades to realise. Without a clear energy policy now, it will take longer. And by this time, it could be too late…

Texas, of all places, is building a reputation for cutting edge alternative energy projects.

Following T. Boone Pickens’ $2-billion investment in a wind-turbine project there, Danish wind-energy company Vestas Wind Systems has said it will open its first US research and development facility in Houston.

“Those who sell wind turbines are making great money on increasing orders,” says Charles Delvalle in Investor’s Daily Edge.

The British government gave a huge boost to wind energy stocks this week, opening bidding for offers to build up to 25 gigawatts of offshore wind turbines by 2020 — triple the amount previously planned.

The European Union has set a target date of 2020 for 20% of its energy to come from renewable sources. The British Wind Energy Association said Britain will contribute 15%, meaning up to 40% of the country’s power will come from wind energy by the target date.

“The richest investment opportunities can be found in the fast-emerging alternative energy sector,” says Mike Burnick in The Offshore A-Letter.