Are we ready for the next leg?.
From a weekly perspective, AEE moved from 15.5 to 17.5, so one would say, yes - a decent move.
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So what is happening? Last week I had asked for CCJ - "Do we got 60s or we back test 45". I had written that previously CCJ had back test 45, but we should not assume anything. Follow price action. I also wrote last week how CCJ had reached 49 few times and it held, which was very positive. Overall last week I felt that we had not yet got a clear signal. And I felt we have to wait. This week it held 50 on Tuesday. That was a big sign for me. I suddenly felt that the back test is only up to 50 level, not 45 this time. then we got some news. I had been writing that in this phase CCJ may make a new high above 56.24. Yesterday it reached 57.55. So something that i had been writing for close to 4 months, finally happened, we got a new high. I had thought it may happen by first week of October, as I had been writing September high (last week September/first week October). So I missed by just over a week the new high. I have also been writing that CCJ after it crosses 56.24, may reach mid 60s in this phase of rise. That has not happened yet. Lets see what's in store..
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From a numbers perspective, AEE has to get over 18, minimum. That's the CR number from before . Overall, the strength in AEE is not very strong till now. Reason being, most big stocks, closer to production, are making the most of this phase. Its not unusual that big stocks lead the way, mid/small stocks follow. But overall. mid/small stocks have not done as well as big stocks. Will that change? I don't know. I have no control. I just see what's happening and try to follow. So AEE is behind for now. Whether it will continue to remain behind, or may do a sudden catch up, is to be seen. I see a pattern. I see AGE/EL8 just to start, and then you look at smaller ones BSN/GUE/HAR/1AE/ GLA/AEE etc and they are struggling, while we are supposed to be in the moon. But that could change. It doesn't take much.
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Personally, 3 weeks back I wrote that I have exited my stocks. I bought back this week. Mostly from Wednesday onwards. Some at 16, 16.5 and 17. My average is just over 16, which was close to where we were today. So lets what's in store.
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So what may happen next week? I have a feeling we may see CCJ make mid 60s. Most U stocks may do well. Odds are good, but its only probability. May not happen. CCJ could just drop below 50 and everyone will get spooked. That can happen, but odds are not great. We may not go in a straight line though. But odds are good for another few weeks of good time in U world. Will that happen? Lets hope so. Enjoy your weekend and all the best
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