This week - make or break, seems so?.
From a weekly perspective, SLX moved from 513 to 511. Usual volume, not much movement. Though there was a drop to 40s from where it recovered.
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So what is happening? This week CCJ has said - I don't know where I want to go. Sorry, it is saying I am not sure I want to go higher. So I will drift down. And its drifting down for sure. I have been writing that the play of CCJ may give direction to the sector, to most U stocks. It doesn't need to happen. But my trading pattern says that its not unusual for that to happen. CCJ is at the boiling point, and something will give way soon. I am not sure whether on the up side or down side, but slowly its building. We will know soon.
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So what is happening? Last week I wrote that I feel, that CCJ should not drop more than 10% from its high. I wrote the same l2 weeks back. CCJ is playing weak for now. Yesterday it reached 51.31. The 10% drop is 52.80. So it went below that. It recovered but not enough to get over 10%. But not very far away, within the margin of error, at this stage. Last week I wrote, if it drops below 10%, below 52, we may be in trouble. I still feel, we are playing that same game. I feel we are playing that game now with more weakness than last week. Things are not looking great. In short term. Full stop. We need to hold here, otherwise, we may see a very big drop, based on previous patterns. Lets hope it holds. CCJ needs to be above 52/53, for a start. If it holds, we may see a good play, CCJ reaching mid to high 60s, all other stocks making merry. Otherwise, some panic, very soon.
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Personally, overall, last week I wrote that I was one third Li stock and two third Uranium, in terms of where I play the sector, not other individual stocks. I am still the same. But I did a lot of trading this week. Couple of days back I had nearly got out of all my holding in Li stocks, but bought back today. So my holding is the same, but I have been lucky to reduce my averages.
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Personally for last 2 weeks I have been writing that I am holding SLX at average 480. No trades for me this week.
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So what may happen next week? I have a feeling that CCJ will give direction. If it holds 52/53 - the uptrend may continue. If CCJ loses that, it does not mean the uptrend is stopped, but odds decrease. There are no guarantees. Last week it did 5 reads in a row. It got green on Monday, now another 3 reds. So the work is cut out. Its really not giving much in term of vibes, but we need a good play soon, otherwise a goodbye play soon. CC needs to be green tonight. So that next week it can make a new all time high. Will that happen? Lets hope so. Enjoy your weekend and all the bes
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