Uranium Shares have topped out

[sydneysider]

The U dementia that has been underway in massive doses for many months just topped out. Look at PDN, it has gapped down and hit with massive volumes. Almost all of the U's have similar chart patterns. Distribution tops with yesterday's gap down. Just run thru the list and most of them have the tell-tale gap down on volume. The gap is a very potent bear signal. Time to sell em, because all of those hedge funds that were madly buying will now be liquidating.

IMHO u can now go buy the golds. They have been so quite for so long that many of them are very good buying especially with gold on a scream. Their patterns are totally different from from the U's. My favorite is NWR which IMHO is probably the most exciting (basement priced) gold play in Australia to-day.

 

[Realist]

Re: Uranium Shares have topped out, sell them

Oh dear.

what rubbish.

 

[falconx]

Re: Uranium Shares have topped out, sell them

Oh dear.

what rubbish.

LOL

sydneysider: Demand for U has not dampened at all and so the spot price will continue to rise for at least another year IMO (might even double), no real reason for the down-ramp.

 

[billhill]

Re: Uranium Shares have topped out, sell them

The U dementia that has been underway in massive doses for many months just topped out. Look at PDN, it has gapped down and hit with massive volumes. Almost all of the U's have similar chart patterns. Distribution tops with yesterday's gap down. Just run thru the list and most of them have the tell-tale gap down on volume. The gap is a very potent bear signal. Time to sell em, because all of those hedge funds that were madly buying will now be liquidating.

most fund managers wont take any notice of technical gapping down and unless the fundamentals change (which they haven't) this selling down is merely a hiccup in terms of U stocks. If anything this is a healthy retraction for U stocks which seem overvalued but in reality still have huge upside with a rising U price and likely legislatite changes in australia. The top is probably due later this year IMO but there is still a way to go.

 

[sydneysider]

Re: Uranium Shares have topped out, sell them

Oh dear.

what rubbish.

The whole U sector is a collection of "blow-off" tops followed by yesterday's down side gaps. The whole sector has an enormous number of specs that have tripled since early December. Lots of very hot money (from everywhere) and brokers credit chasing the next runner. Down-side gaps signal substantial corrections after massive rises.

 

[Freeballinginawetsuit]

Re: Uranium Shares have topped out, sell them

Yep PDN has gapped down and been distributed today for sure, its also been soaked up by some serious bids.

I have been busy the last 10 mins myself, tomorrow I may be busy again.

Lets see what pans out......as far as I am concerned this is one that has a rosy future>long term. Not to fussed on the noise ATM

 

[petee]

Re: Uranium Shares have topped out, sell them

The whole U sector is a collection of "blow-off" tops followed by yesterday's down side gaps. The whole sector has an enormous number of specs that have tripled since early December. Lots of very hot money (from everywhere) and brokers credit chasing the next runner. Down-side gaps signal substantial corrections after massive rises.

hi all
Sydneysider has a very good point here...he isnt saying the Uranium sector is stuffed..he is simply saying it so far overheated that its due for a really proper correction and i agree entirly..once all the institutions dump and take profits from the crazy rises then it will tumble to levels of value...this would be seen as healthy...take PDN as a classic example..this stock has risen so far and yet the fundamentals havent changed in the past 6 months or so..anyone think it has has rocks in their head..keep up the balanced posts Syd

 

[56gsa]

Re: Uranium Shares have topped out, sell them

take PDN as a classic example..this stock has risen so far and yet the fundamentals havent changed in the past 6 months or so

petee - do you consider the price of a commodity as a fundamental? 6 months ago ABN was using US$50/lb in their valuation of PDN, they now use US$95/lb (above market price) but are talking US$120-140/lb in terms of setting a target

this seems a fairly fundamental change in last six months?

like gold going from $600 to $1600 in six months

 

[petee]

Re: Uranium Shares have topped out, sell them

petee - do you consider the price of a commodity as a fundamental? 6 months ago ABN was using US$50/lb in their valuation of PDN, they now use US$95/lb (above market price) but are talking US$120-140/lb in terms of setting a target

this seems a fairly fundamental change in last six months?

like gold going from $600 to $1600 in six months

well from the price of U compared to the shareprice rise i think its over the top..ok granted that PDN raised plenty cash from a high shareprice but still remains a concern about ongoing cashflow

 

[Freeballinginawetsuit]

Re: Uranium Shares have topped out, sell them

Rocks in the head?
Yep like the single 'rock head' bidder punting half a mill as we speak in PDN's depth.

I mean only 4 months ago I was chopped on this forum for buying them at a new support at $4.15........glad I wasn't a member 2 years ago on the forum.

Speaks volumes of what goes on around here at times

 

[sydneysider]

Re: Uranium Shares have topped out, sell them

hi all
Sydneysider has a very good point here...he isnt saying the Uranium sector is stuffed..he is simply saying it so far overheated that its due for a really proper correction and i agree entirly..once all the institutions dump and take profits from the crazy rises then it will tumble to levels of value...this would be seen as healthy...take PDN as a classic example..this stock has risen so far and yet the fundamentals havent changed in the past 6 months or so..anyone think it has has rocks in their head..keep up the balanced posts Syd

Thank u for your comments. Long term, some of the U's are OK. I am looking at a correction that "shakes the tree" pretty hard and brings sanity back into the sector. U also need some decent economic discoveries to take place. Where are they? U know when the market is overblown when a few samples can make a stock double i.e MKY or when a JV announcement on WMT sets off a tidal wave of buying. A JV with BHP might be fabulous BUT the hard reality is that this might take a year or two to develop (not the next ten days).

 

[Prospector]

Re: Uranium Shares have topped out, sell them

I mean only 4 months ago I was chopped on this forum for buying them at a new support at $4.15........

We can only hope that statement doesnt come round to biting you on your.....behind!

 

[Freeballinginawetsuit]

Re: Uranium Shares have topped out, sell them

LOL, the problem with holding any new miner...........it all goes belly up, but I also travel in planes so I am up for the odds (I'd say Borshoff deserves those odds).

 

[greggy]

Re: Uranium Shares have topped out, sell them

The U dementia that has been underway in massive doses for many months just topped out. Look at PDN, it has gapped down and hit with massive volumes. Almost all of the U's have similar chart patterns. Distribution tops with yesterday's gap down. Just run thru the list and most of them have the tell-tale gap down on volume. The gap is a very potent bear signal. Time to sell em, because all of those hedge funds that were madly buying will now be liquidating.

IMHO u can now go buy the golds. They have been so quite for so long that many of them are very good buying especially with gold on a scream. Their patterns are totally different from from the U's. My favorite is NWR which IMHO is probably the most exciting (basement priced) gold play in Australia to-day.

What a brilliant ploy you have. Cleary you don't have any uranium stocks and hold NWR shares (amongst other gold shares). Otherwise why would you mention NWR?
But I guess I should rush out tomorrow and sell out of all my uranium stocks. NOT! (as Borat would say).
P.S. The uranium price still looks in excellent shape.
DYOR

 

[Realist]

Re: Uranium Shares have topped out, sell them

LOL, the problem with holding any new miner...........it all goes belly up, but I also travel in planes so I am up for the odds (I'd say Borshoff deserves those odds).

I think travelling in a car is probably more dangerous than travelling in a plane.

I would not have ALL my money in Uranium stocks, that'd be asking for trouble.

But on ther other hand I would not sell all my U stocks now either.

Have a balanced portfolio and you are fine.

 

[greggy]

Re: Uranium Shares have topped out, sell them

I think travelling in a car is probably more dangerous than travelling in a plane.

I would not have ALL my money in Uranium stocks, that'd be asking for trouble.

But on ther other hand I would not sell all my U stocks now either.

Have a balanced portfolio and you are fine.

Smart thinking, very wise indeed.
DYOR

 

[Freeballinginawetsuit]

Re: Uranium Shares have topped out, sell them

Prospector,

I hope I don't get my behind bitten.....although .

In regard to that particular mentioned trade well its movements were pretty clearly stated on this thread, so I think my bums safe on that one.

 

[BSD]

Re: Uranium Shares have topped out, sell them

From a non-chart perspective - I also would not want to hold any serious exposure to any Uranium stocks.

They are a 100% hype-play at the moment and when risk capital leaves and margin calls arrive, hype-plays fold hard

It doesnt matter how strong the Uranium price is - 95% of the U plays dont mine anything (except shareholders) and most havent even drilled a hole.


The U sector will be the worst hit if this market drops hard -which looks a good bet

 

[Joe Blow]

After some thought I removed the 'sell them' part of the thread title. I think it works fine as 'Uranium Shares have topped out' and I would not like to give the impression that this thread was advising anyone to sell anything (due to ASIC regulations). Nothing personal sydneysider!

As always, please, do your own research and use this thread as a starting point for discussion.

 

[purple]

Re: Uranium Shares have topped out, sell them

Looks like some people forgot their Economics 101 : Supply - Demand.

Fund managers, analysts, techies can blow their rhetoric all they want, they still have to adhere to market forces.