Wednesday, August 15, 2007

This morning looks ugly

There will probably be a dip then rally this morning but must stay short.
I would say today that I will be looking to trim my positions at close.
1) There is a potential of an additional 5-6% drop in the markets.
2) The Yen is working and not the Swiss.
3) My speculatives are weak in this environment and can get weaker hence speculatives, so am thinking of closing them out at close. Not panic driven but preservation of capital is on my mind. SO WE CAN SPECULATE LATER!

Uranium mining companies have had such a jarring run down that at this point it makes no sense to sell. Remember that 20% of these companies market values are cash. They can't get to the prices they were before the phenomenal run up because, if they did, they can close up shop and distribute the assets of the company.

I believe that a recession will be good for the nuclear industry actually. With the slowing down of global production, there will be less demand for coal powered plants as the nuclear fleet begins to be built which should make people comfortable with a 'nuclear' world. Additionally, nuclear power plants are worker intensive one needs in a slowing economy. But where are they going to get all the uranium from?

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