This week was the worst week we have seen for uranium stocks with many stocks losing up to 50% of their value in a blink of an eye. The selling on Wednesday and Thursday looked like sheer panic to us. Previously we had written about capitulation thinking that we were there or thereabouts but the carnage continued to make for a gut-wrenching week.

The credit crunch in the housing sector put investors on red alert as the lenders struggled for breathing space. The Federal Reserve duly responded with massive injections of capital followed by a rate reduction. For the moment we can only imagine that the Fed will continue along the lines of injecting capital where and when necessary to keep the financial system afloat.

Friday brought much relief to the markets with the DJIA closing up 233 points and uranium stocks bouncing back to give us some respite from the carnage. Some stocks gained as much 20% on the day while others failed to get off the ground. Is this a dead cat bounce you ask? We don’t know. However we do believe that the worst is now behind us and the downside is now limited. That does not mean to say that higher prices will return as of right now.

The volatility will no doubt continue but we do expect to see some recovery mixed with side ways consolidation and we will look to take advantage of these prices while stocks last!

Tough it out is the order of the day.