Today BSK.V – Blue Sky Uranium made an impressive move and exploded to the upside. This is a great example to show what kind of stocks I am looking for and how I am trading. The goal is to find and trade the strongest stocks within a sector that is moving up. In this case most Uranium mining stocks are not moving up and are mostly trading sideways. The long-term weekly U.TO Uranium Participation chart is a picture perfect visual representation of this sideways trend. The 30 MA displayed in the chart is the one Stan Weinstein uses in his book. It could be a 35 or a 40 MA. It doesn’t matter. The key is to identify the slope of the moving average. The best long buy entry points are pullbacks towards a moving average with an upward slope. This is clearly not the case with the U.TO – Uranium Participation chart at this point in time.
Up-to-date U.TO – Uranium Participation chart on my public list.
BSK.V – Blue Sky Uranium on the other hand is one of the few uranium mining stocks trading in a clearly defined uptrend. Furthermore BSK.V is trading at a 52 week high and has no immediate overhead resistance. I am beating a dead horse here. My experience clearly shows traders that are new to the game do not understand this concept.
My point is: Always go with the strongest stocks within a sector. Odds they will continue surprising to the upside are much higher. As I’ve stated recently, a strong stock is your best hedge as it can move up significantly even if the underlying commodity is moving sideways. BSK.V’s move today is a perfect demonstration of the aforementioned strategy.
Up-to-date BSK.V – Blue Sky Uranium chart on my public list.
Here’s a list of stocks in the uranium sector I am watching. Some are part of my Uranium Sector Overview Chart:
- U.TO – Uranium Participation
- BSK.V – Blue Sky Uranium
- UEX.TO – UEX Corp.
- PDN.TO – Paladin Energy
- LAM.TO – Laramide Resources
- URE.TO / URG – Ur Energy
- DML.TO / DNN – Denison Mines
- HAT.V – Hathor Exploration
Buying the strongest stocks within a sector is your best insurance.
Have a great evening!
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