Uranium Stocks: A Quick Look

Very few uranium stocks trade on US exchanges. Of them, most suck fundamentally, and even the leader of the pack, CCJ, doesn’t have the best of fundamentals. So the most sensible way to make a bet on the sector is with ETFs, of which there are two: URA and URNM.

Simon says to avoid both. The solar ETF, TAN, is down as well, and oil is crashing big time. But if you’re a ‘value investor’, rather than one of them oh so naughty ‘traders’, you should be nibbling. (IMHO, 'natch, which is why my wheat trade is working.) Another bottom-fished trade that’s working well for me is SCHW. (In at $47 and change and now up, a couple days later by 20% to 25%.)

So, what I’d say is this --to be reinforced later with charts-- is that if you intend to “invest” --as opposed to “trade”-- that price-volume charts are crucial, but that they need to be supplemented with 'fundamentals", and the whole process has to be governed by your own, situation-specific, risk-management plan.

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