So the TSE did its usual 1000 points and appears to have done so in a clean 5-waves. A pretty good correction should follow to ,perhaps 13750 or so. This may take longer than shown in the above chart. After that at least one other leg down should follow. 12750 or so would be a reasonable target.
This has been a pattern for the Nikkei that I have been looking at for the past year or two. You can find it in my blog in at least 3 different places. This pattern is an expanding diagonal triangle in Elliotte Wave lingo; in English it is an expanding wedge. A recent example where this occurred was with Ford when it dived to about $1.
As far as I know no other EW practitioner has had this possibility in mind, so it is pretty unique. Today (the chart is not updated) we are at about 8900. The low does not have to occur on the trend-line as often the low is reached well before that point is reached. It seldom exceeds that point. Even so a meaningful second down leg should be about 5000 points from the 10k level of the B-wave of wave 5. Lets hope I am dead wrong. Below is another chart from about a year ago.
Cameco is, I think , is the worlds largest producer of fuel for nuclear plants. It has had a few flooding problems of its own at the Cigar Lake mine etc.etc. but apart from that it is still the big boy in the sand box. They are like Potash Corp., they even hail from the same province and are neighbours in a manner of speaking.
The Japan tragedy has caused a knee-jerk reaction against nuclear power. Mirroring that the market is now rather fond of solar gadget producers like FSLR. Both are probable misplaced! Nuclear power contributes somewhere between 15% at the low end to 70+% at the high end (France) of the worlds needs for electricity. As it stands there is no known alternative, even if they may one day change to a less belligerent fuel (thorium as opposed to uranium ?). Solar on the other hand has a bright future but probable not in the next 3/5 years. Our Canadian government, as so many others, has agreed to feed-in-rates that are sometimes a tenfold of the actual costs. Rather than confess their sins they prefer to stall the system by way of administrative delays, hurdles etc.etc. There are untold numbers of farmers etc. that have installed a small fortune on their roofs only to find out it may take 10 years for the connection to the grid! Most of the producers are inefficient but free markets have not prevailed and some of these companies are going to be decimated.
My guess is that CCO is a buy at about $23. By the way, UEX, UUU,and DML (Denison) all have similar chart patterns.
Before and after (the earth quake) Nice A-B-C in both cases, just moved the start point to the March date as opposed to Dec. It always amazes me how stuff happens at the “right” time, or is it the other way around?