04-24-2015 Journal- $LRAD, $CERS, $LEU, $NUGT, $AMRN

Much credit go to the bull’s ability to withstand the headwind from the Greece’s tantrum. Instead of reacting in fear with bearish sentiment; the market took it in stride.  Once Greece gives the final answer, it may bring in a whole new ball game. The degree of the market reaction will depend on what the majority is expecting.  No matter, I’ve to prepare for the worst just to be on the safe side.

DJ-30 weekly

From the weekly chart above, you could see the market gained back the week with a green bar; however, it falls short of taking out the high of last week.  At this point, there is nothing to do but wait for Greece to call the play.

Today, I added $LEU to the port for the uranium play. I missed the $UEC, $URA, and $CCJ rallies so $LEU looks appealing as a late bloomer.  But $LEU is not without its Achilles’ heel.  It’s enrichment technology (known as American Centrifuge Project) is inherited from a recent bankrupted USEC ($USU).  Basically, $LEU is $USU without its huge debt.  Now, it’s on a mission to get a loan to complete the centrifuge project. Below are excerpts from the article: Centrus Energy : ‘ American Centrifuge Technology Demonstration and Operations Agreement Extended

  • Centrus, which has invested more than $2.5 billion to develop the only U.S.-origin uranium enrichment technology available for national and energy security purposes, acts as a subcontractor to ORNL through its wholly owned subsidiary American Centrifuge Operating, LLC. The national laboratory has been tasked by the Department of Energy (DOE) to assist in developing a path forward for achieving a reliable and economic domestic uranium enrichment capability that supports national security.
  • Pursuant to the FY2015 omnibus appropriations bill, DOE is currently examining long-range options for meeting the government’s need for enriched uranium to support national security. DOE is expected to report its findings to Congress later this year. Centrus remains committed to working closely with DOE and Congress to maintain and deploy this technology to serve national security and energy security needs.

While there are no guarantee that $LEU will be ‘the” domestic uranium enrichment company to support national security (GE is working on a different technology to enrich uranium), I like the potential multi-bagger reward if $LEU rises from the ashes.

LEU_weekly

The above weekly chart shows a continuing upward momentum.  Notice that this week price bar has penetrated the recently narrowed Bollinger bands to the upside. This is a very strong breakout bullish signal.  Remember how the halt of Japan nuclear power usage after the Fukushima incident kicked off the bearish trend in uranium?  With Japan coming back online with nuclear power usage, it could be the catalyst to kick off the bullish trend in the uranium sector.  After multiple attempts for uranium sector to rally and then failed since earlier 2014, I believe this time around, current short-term bull trend may turn into long-term bull trend.

$NUGT kicked off in the open by running higher, out of habit, I immediately bought some.  And as price continued to advance, I added more.  Unfortunately, price failed to sustain the upward momentum and the bear mounted its attack and succeeded.  I’d no choice but to cut losses with the majority of the shares I bought in the morning and leave only a starter position.

NUGT_weekly

From the weekly chart, price is now trading near the lower part of the ascending triangle.  If price takes out the uptrend line below, I will cut my losses on the starter position.

$AMRN practically took a dive after yesterday run-up which effectively cancelled yesterday momentum.  Seeing that the weekly prescription number published showed a small drop in growth, I decided to sell the $AMRN position to raise cash.  Yes, I’ve been in-and-out on this stock several times already but that is only because I’ve no intention to give back the gain I made recently on its run-up from $1.xx.  I will trade $AMRN using guerrilla tactic- attack and retreat; attack and retreat, and so on.

AMRN_weekly

From the weekly chart above, $AMRN is now trading at the lower end of the consolidation range.  I’ll monitor this stock for the next opportunity to attack on the long side (meaning I will go long. I’ll never short this stock since I’m taking Vascepa myself and know its health benefit from personal experience).

$CERS has a fantastic week!  I believe it is safe to say that today up week confirms the doji week bar three weeks ago (see circle in weekly chart below) as a bottom formation.

CERS_weekly

So far, you can see that with a doji near the support and resistance, it gives you a very good odd of a possible bottom or top formation respectively.  It is always a good bet to make.  While I did not load up like I used to do with $CERS due to my fear of Greece’s final answer, I did add a bit more today giving available free-up cash.

$LRAD also has a great week.  It broke out of its consolidation range and took out the weekly 15 MA line.

LRAD_weekly

What I like about this recent bounce is that it is bouncing off the converged 79 & 89 MA lines which to me is a strong bullish signal.

With DOW continued to head higher during the day, I sold the remaining $SPXU to raise cash.

Thanks to rallies from $CERS and $LEU, the gains were able to offset losses from $AMRN, $NUGT, and drawdown from $LRAD to limit the losses to 0.5% for the day.  YTD gain is now at 20.4%.

Current holdings:

LRAD, CERS, LEU, NUGT and 38% cash.

My 2 cents.



Categories: Daily trading Journal

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