CCJ: sold to get out even. Reasons:
1. The chart looks like a classic "broken stock": gapped down, plunged below its 200dma, rallied back up to the 200dma, failed to get above it, and continued on down. This often indicates the beginning of a LT downtrend.
2. The Japan mess looks like it's going to linger for months. They have averted a Chernobyl, but are failing to contain the spread of radioactives. In particular, the presence of plutonium outside all containment, is a very bad sign.
3. The S&P500 is overdue for a 10% correction, or more. As a risky stock, CCJ will go down more than the market, on any downturn. As the S&P500 gets closer to its triple top level of 1550, I become steadily less willing to hold hi-beta stocks.
4. I will continue to follow the stock and industry. I still think the nations with plans for big buildouts (China, India, Russia, S. Korea), won't abandon those plans. If I'm right, I'll get a chance to buy back at lower levels. If I'm wrong, I've missed an opportunity. Either way, my capital is intact. |
