XAO Indicator

This blog is intended to be read in conjunction with the XAO Indicator which can be found at http://www.asxindicator.blogspot.com/.

I am not a financial adviser so you should not take any part of this blog as being financial advice. Observing and interpreting charts is a hobby and so is this blog. The information in this blog is just my opinion, it may not reflect reality. Stock market investing is risky - you can lose all, or potentially more than all of your money given certain market conditions. Not only can lose a lot of money buying shares, you can also lose a lot of potential profits by selling shares at the wrong time. So please do not buy or sell shares because of information in this blog. Whether you buy or sell shares is your decision as is the decision when to buy and sell. Do not risk any money you cannot afford to lose. Do not risk any money if you do not fully know and understand what you are doing.

Wednesday, February 9, 2011

MEY gives a buy signal

Marenica Energy Limited (MEY, formerly West Australian Metals Limited) is an exploration company focusing on the discovery and development of uranium deposits. MEY’s principal project is Marenica Uranium Project in Southern Africa. I have never owned shares in MEY but I bought some today - for three reasons. First, the XAO Indicator is blue so it is a good time to be long stocks. Secondly, MEY is in the uranium business, commercially uranium miners seem to have a very bright future. Many see uranium (to create nuclear reactors to provide energy) as the answer to the greenhouse problem which accounts for current bullishness on the price of uranium and uranium miners generally. Environmentalists are negative on uranium for several reasons which I won't go into here. Suffice to say that regulations are strict and controls on disposal of waste very stringent. The third reason for going long today is the buy arrow on my trading system. (Disclosure: I own shares in MEY).
Click on chart to enlarge.
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