Still undecided of next big move - which way will it go - up or down?.
From a weekly perspective, AEE moved from 15 to 14, a small drop.
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So what is happening? For those who read my posts, can see how much I use CCJ as a barometer to provide direction. I had written that if CCJ holds this level, then CCJ could go between 65 and 70, taking a lot of U stocks to higher ranges. But if it does not hold, then most U stocks would go lower. This week CCJ has not provided a decisive play.
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What is positive happening:- CCJ has held this level. Few times this week it came to 50 but has recovered.
- Most U stocks are playing in similar range, for now.
What is negative happening:
- CCJ still looking uncertain. If it loses this range 50/52 mark, there can be a big drop. Most U stocks will suffer.
- People don't like an uncertain state. U stocks too. So they are drifting down. Have not lost the plot, but feeling weak. Some, very weak.
- Spot price is on a spiral down. Very concerning, now at 76.6, a figure not seen in last 1 year. I know some may say its not relevant. But when it rises, everyone laps on to it. So we can't be two-faced.
.AEE too is playing the macro. And like most U stocks, doe not like uncertain state. Its drifting down, which usually happens in this state. So we wait for CCJ to once again create a magic and give the necessary strength for others who are now feeling overwhelmed.
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Personally last week I wrote that my average for this phase was 16. I l have got out of around 40% of my AEE stock at 10% loss around average 14+. This phase didn't work out till now as I was hoping. I play level to level. Once it crosses a level, I get out, all or most. I played accordingly and took a small loss. I hope this is transitory and it comes roaring back soon. I will be waiting.
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So what may happen next week? I have a feeling that CCJ will give direction. I know there are lot of experts on X, many get swayed by them, especially those, who hear what they want to hear. But that's not enough. As I write nearly every week, U sector, being small, is very volatile and can be played around. Making 100% gain and losing all in few months, is a play which has been orchestrated many times in last few years. Whether we like it or not. For those, very, very long term, it should not matter. But those for short to medium play, what those guys are doing, is not to be ignored. As I always say, best to follow price action. CCJ has an uphill task, first to make a new high, its quite far from here, but any progress towards that will help sentiment and U stock price. Will that happen? Lets hope so. Enjoy your weekend and all the best
(20min delay)