An intraday perspective

The selloff in uranium related stocks and the boom in refining and solar related stocks could not be more of a boon for day traders. Today all of my trades were focused on these sectors. There was a lot of volume and a well defined trend in the names. Here are some of the 1 minute charts:

CCJ – Very volatile. Got stopped out a few times because of chop. Still some attractive trades in there.

VLO – The VWAPs were good signals in this name today.

LDK – Some early trades, but boring in the afternoon.

USU – Nice, slow, actionable set up here. Clearly defined trend and lower volatility.

YGE – Volatile and really only one trade in catching that bigger move up.

My initial reaction is that the selloff of nuclear is overdone as little has changed in the underlying energy demand picture – Japan may end up importing more oil and coal now as they need to get their electricity from somewhere. Furthermore uranium names didn’t sell off during the day – this could quickly change with more bad news which is quick in coming.

Also oil dropping on reports that Japan will be using less completely misses the reason for the run up in the first place. Do not confuse supply constraints and instability with an excess of demand.

I will post again later discussing oil, nuclear, the precious metals, and US treasuries – I was reading reports today that the oil exporters have begun reducing their exposure which surely cannot bode well.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: