A bull market is declared as uranium stocks go ballistic

At the beginning of the week the newspapers told us that we are officially in a bull market, but what does that really mean? Is it a signal to go out and buy, or is it a commentary on what we have already done? The All Ords has risen about 1,000 points since January 2016. That is approximately 20% higher. It has recently breached a resistance line that goes back two years. At the moment it is in clear ground, but it is also showing vulnerability to pullbacks that could easily see it 200 points lower, as it started to do as the week progressed.

As the chart shows, the rise in the spot uranium price has continued to climb. It is now US$6/lb higher, being 33% above the November low. The latest spurt comes with news that Kazakhstan, the world's largest producer of yellowcake, will cut production by 10%. While Paladin's future is under a cloud, some of the other uranium companies on the ASX have performed very well in recent days.

 

 WeeklyComm14January2017.pdf