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Where Is The Price of Uranium Headed?
David Frost
October 30, 2023
⚾PRE GAME WARMUP
Happy Monday. The overnight crew had a little help from the partial eclipse aka tin foil hat event. They're getting a rebound in the variety of a DCB (dead cat bounce).
We'll start with the bull case which has a mandate for price to be above [Login Here], which opens the door back up to Friday's bull pivot zone between [Login Here]. Above the top of the zone, the door opens for another leg higher which will be covered in a real time formation as and if needed.
Below the bottom of the zone and the door is open back down to [Login Here] or lower, which will be known today as our early bear pivot.
Below on candle closes and the door opens for a visit toward Friday's close or lower and the appearance of another failure operation…
🎬THINK IN PICTURES
Classic case of late to the party?
Here’s how this normally works. A market or stock will begin to move higher. Once it catches the attention of the media talking heads and digital click bate people, investors begin to take notice.
Here we go again with chasing in a FOMO type of situation. The chart below is URA, which is a Global Uranium Exchange Traded Product.
We want to buy pull backs rather than chase the thing when the media frenzy begins.
🌗RECYCLE TIN FOIL HAT
This weekend was a partial lunar eclipse
These kind of events can create a shift in sentiment, geo politics and markets alike.
Seems to be working this morning…
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💣RECKONOMICS
This one is a combination of reckonomics and psych ward type stuff…
Rising bond prices are like the boy that cried wolf already which opens the door for a bottom in prices and top in yields. The more headlines, talking heads and pundits that cry wolf, the closer the bond market is to a significant turn.
All the relevant yields have reached that magic five percent area which created the current conversation. Remember, most investors and traders are programmed to think what’s happening now will continue to happen the future.
While that may be true in some cases, most of the time it’s not. Once the rhetoric heats up to the boiling point, she’s closer to a turn than not.
Big time money managers, hedge fund managers and economists alike are not immune to conventional wisdom causing them to make the age old mistake. Just like when the stock market is rising or falling, no end in sight, which is one of many mistakes they make over and over - it’s never stops.
See continue-ites below…
🩺PSYCH WARD
Today we’re talking about a condition called continue-itis.
Investors and traders tend to think what’s happening in the here and now will continue into the future.
One of many things traders in the LIVE Trading Room are reminded of is “what’s happening now isn’t necessarily going to happen five minutes from now.”
It’s a natural human behavior and emotional response that can be hazardous to you account health. This can come in the form of FOMO causing you to jump on a move in a stock or market near a resistance area, which causes an immediate change in direction and change in thought process right away.
It also comes in the form of being “the last trader out.” You know the one. The stock is falling, you’re pretty close to the uncle point where a cut and run appears in the cards and all you can think about is losing more money as the thing continues to fall.
About a 25 seconds after you sell, the reversal begins to take place, the bounce begins and you’re now saddled with a loss watching the stock rise right back to your entry price and beyond.
Having the knowledge and understanding of where support and resistance are, why they’re there and what happens once price gets there prevents continue-itis and gives you an edge on the competition…
Where do you learn this kind of stuff?
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DISCLAIMER STUFF: Nothing found in this communication is financial advice. This newsletter is strictly educational and not intended for or should be thought of as investment advice or a solicitation to buy or sell any assets or to make any financial decisions whatsoever. Please be careful and always do your own homework.