Sunday, November 05, 2006

Ideas for the Week of Nov 6, 2006

Many of the stock trading blogs that I have read have identified this current market as overextended, overbought and due for a pullback. Two market sentiment indicators that I regularly use, the NAA50, and the BPCOMPQ, seem to agree with that assessment. Adding fuel to this argument are the fact that both SDS and QID appeared to have broken their current downtrends.
Given the increased risk of the market rolling over, and the uncertainty surrounding the midterm elections this week, I wasn't surprised that I was not able to find too many decent ideas for this coming week.

Here is one that I did find with a decent setup:
Basically, if 13 can hold up as support, then a challenge of the high @14.4 will be in the cards.

In the meantime, while I wait for the direction of the market to assert itself once again, I will be looking at daytrading and swing trading some stocks that are in part of the biggest bull market rally that no one knows about. And yes, all of the uranium stocks that I identified are Canadian stocks which trade on the TSX (or TSX Venture exchange). Currently, the only American stocks that I know of which are involved in uranium are: Cameco (CCJ), Fronteer Development Group (FRG), and US Energy (USEG). There may be one or two others, but really, Canada is the premier market of choice for Uranium companies, and even mining companies in general.

UPDATE: In case there is any misunderstanding, Cameco and Fronteer are both Canadian companies that are dual listed (on both the TSX and the NYSE/AMEX). I think those are the only 2 Uranium mining companies that I know of that are dual listed.

No comments: