daytrade diaries... friday, page-6

morning guys,

some positive signs in the overnight US trading session, with the market once again able to shrug of poor economic data to move higher once again.

as has been highlighted in the last 24 hours it seems that the uranium sector is starting to heat up again on the back of news China is looking to construct an additional 5 Nuclear Reactors, as history has proven this is likely to be a multi-week/multi-stock rally, the best profits will be made in the stocks that haven't run too hard yet, with both WME and TOE currently looking like breaking out higher after breaking resistance late yesterday on strong volume.

for me I like WME for the following reasons:

- Shareprice was up 27.94% in German trading overnight, so not just Australian buying.

- Two weeks ago the chairman bought 3.5 million shares at 15c at a personal cost of $525,000, this is a huge vote of confidence for the company, and is likely to signal positive near term announcements

- The fact they are based in Namibia only 70km from RIO's giant Rossing Uranium Mine

- They have recent positive uranium exploration results, with more on the way, which judging by the reaction to DYL's results yesterday could significantly move the shareprice.

- Technically the price action is looking positive, with it breaking resistance last night on good volume.

- And basically it is in the right sector at the right time, with the uranium sector looking likely to breakout, sector momentum will drive WME higher.


Also keeping an eye on TOE and the rest of the sector for further momentum.

As mentioned by MKNOP yesterday BUL is another interesting one, with the company appointing financial advisors for possible "corporate transaction" or in other words possible takeover, being in the coal seam gas sector they could attract a nice premium if a takeover proposal is confirmed.