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« Cameco PUTS wait for it | Main | Uranium Stocks Attracting More Interest »
Saturday
May022009

Cameco Corporation looks ripe for a short

Cameco Chart 02 May 09.JPG


Chart courtesy of TradeTech.

Taking a quick look at the above chart we can see that Cameco Corporation (CCJ) has put in a terrific run recently as the uranium sector attracts a little more in the way of investor interest.

The technical indicators suggest that this stock is now overbought especially the RSI which stands at 82.23 and it appears to us to be ready to take a breather and retrace a few steps back towards the $20.00 level.

In anticipation of a pull back we are looking at purchasing the June 2009 PUTS at a strike price possibly just out of the money. We will watch the market opening on Monday and then take it from there. This is a hit and run trade so we don't expect to hold this position for very long. If and when a reasonable profit appears we will close the trade.

We thought that it might help if we gave you a 'heads up' as to the way we are thinking and how we intend to try and make a few bucks from this situation. Your comments are of course most welcome.


Cameco Corporation has a market capitalization of $9.60 billion, a 52 week high of C$44.00 and a 52 week low of C$11.78, average turnover is was 2.77 million shares and trades as CCO on the Toronto Stock Exchange and as CCJ on the New York Stock Exchange.


Have a good one.

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Reader Comments (5)

Why would you not comment that you short every U stock, they are all overbought. Why just cameco?

May 3, 2009 | Unregistered CommenterKen Wenger

Ken,

We looked at a number of charts and you are correct there a lot of overbought uranium stocks, however, we thought this one looked the most overbought. Secondly, we were looking for an options trade and not all uraniums have options so it was back to Cameco.

May 4, 2009 | Unregistered CommenterUranium Stocks

Extract Resources Limited kicks off the week with an 18 cent rise to close at $5.11 for an increase of 3.65%.

ASX closes up today and the Asian markets also rise, this mood could follow through to New York and Cameco could have a good day, we will watch and bide our time – patiently!

The UK is closed today – May Day holiday.

May 4, 2009 | Unregistered CommenterUranium Stocks

I don't understand this sites philosophy -for a year during which Uranium stocks have fallen hand over first it has basically played out a 'Uraniun Will Recover' tune. Now that these stocks are recoving you recommend shorting them!

Unbelievable...

May 5, 2009 | Unregistered CommenterNick Outram

Nick,

We are only looking to short one stock (Cameco) and that is because the chart suggests to us that it is overbought at the moment.

We are not looking to short any other stocks and are more than pleased to see this mini recovery take place, our money is in there too.

May 5, 2009 | Unregistered CommenterUranium Stocks

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