Friday, May 09, 2008

Uranium: Back From the Nuclear Winter?

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The chart of my uranium index still looks like it is locked in a downtrend, however, a look at some of the individual components provides a more interesting picture:

Many uranium stocks are trying to break their downtrends, with Cameco leading the way. This was one of the reasons that I bought Strathmore Minerals Corp (CVE:STM) (see picture in my previous post). However, since I do not have confidence on the probability of success of this trade, it was only a small position. On the other hand, these stocks have been so beaten up, that the downside risk is really not that bad. Definitely something that bears watching next week.

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