Cirrus: I'm long but back down to min core positions which aren't especially large in each of the holdings in my basket. Now with the futures in uranium trading and settlement only in cash I'm skeptical. Most of my charts look like they are in a basing period and the stocks have generally been flat to down as uranium has conitnued a little higher.
I'm planning on nibbling on the stocks I like at or just below support on the weekly chart. No telling where we are but would like to see other ideas from those who follow the sector.
Ahoy Tim,
I wasn't even online yesterday, so let me bump this up to the front.
I agree with Hiker -- last summer was a correction, and it could happen again. Heck it is happening again, IMO. Also think Ironcross is in a good zone looking for capitulation selling and some really good buying points therefrom. It feels to me like we're doing something similar to spring and summer 2006, perhaps a little farther along this time around considering it's only May.
World Nuclear Association says we mined about 40,000 tonnes last year but used over 65,000. "Melting down" weapons (pun intended) and using up stockpiles is making up for the shortfall Russia is saying it won't keep going with its agreement to sell its stockpiles after 2013, and the US will slow its sales this year. And now China is going to build up a "strategic uranium reserve." Quite a few new nuke plants coming, too.
I'm glad to see there are more US-listed uranium stocks now, and I've read that some analysts will begin coverage. I figure Joe Sixpack has to get a chance to really run the stocks up or buy near the top. We've got futures and funds in the mix now.
The stocks I see looking strongest right now are BHP, CCJ, EMU, RTP and USU. (Also AZM.V for non-US listed.)
Most are in serious corrections - DNN (DML.TO Denison), FRG, URRE, URZ and USEG. (Also AXU.TO, FSY.TO, JNN.V, LAM.TO, MGA.TO, PDN.TO, PNP.TO, STM.V, SXR.TO, U.TO and UEX.TO)
Already down by their 200 DMA - CXZ (CXX.V Crosshair) and URME. (Also (SAN.V and your.TO)
The "big news" about U3O8 rocketing to $113 then $120 hit, and after the run-up we've had since last fall we were due to take a breather. I'd say the market is flushing the latecomers and scaring the heck out of a lot of people prior to getting into the next move higher, as it's done quite a few times already (PDN.TO, for example, does it about once a year). SAN.V, WRI.V, etc. have gone down around 50% from the highs, so there's been some carnage. Most weekly charts have rolled over. I've been stopped out on a lot of the most speculative ones and am watching for bottoms. Even back in one already -- SSE.V - almost a Fibonacci 61.8% decline and it couldn't stay below 1.00.
Overall I favor actual producers and those near to producing. Then senior exploration companies and those with good production prospects. And even if we're talking about hype and a couple holes in the ground - once in a while a chart will catch your eye....
Best,
Doug
