Uranium Sector Recovers

B. Uranium Sector Uranium has been hard hit over the last several months. The absolute certainty that any stock with " uranium " in its name would rise ended when the commodity price started to reverse. It has gone down another $10.00 this week to $110.- from a high of over $130 Junior companies with no production or likelihood of production were the hardest hit. The AMP sold most of its basket but retains small positions in three companies - often discussed in past columns. How good was today? so good that even the uranium sector was up. Uranium One SXR 11.50 up .33Denison ( DML) DML 10.21 up .35Pinetree Capital ( PNP) 8.63 up .15 When the tide is that strong it carries the garbage out to sea-and I mean that with the greatest respect - I own all three of the above-noted. It's just been a long time since they have been positive. I will wait until the sector turns on a longer term before adding to these names and rebuying the others I sold off during the last two months. At this point stay with producers and near term producers.

Will the stock market rall continue ?

E. Will the Rally Continue What will Tomorrow Bring ? Don't throw away caution. Volatility remains - the sub-prime mess remains, we have no way of knowing how exposed the banks are to the credit meltdown. Look at the stocks that benefit from the global economy - as we discussed above. They are generating cash and have little to do with the subprime slime - unless an actual U.S. recession appears. In the event of further deterioration in the U.S. financial sector a Fed mandated rate cut will rescue the sector and the stock market. In the meantime - don't be a hero. Don't try and guess which bank or homebuilder or mortgage insurer will pick up the pieces of the fallen. Watch the after hours earnings announcements - positive announcements point to a positive start to the day. Don't be complacent - as we saw - a mere rumour that Goldman Sach would make a negative announcement cost the market 100 points until the rumour was announced as false.

from the stock blog www.amprogram.com