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Beer and Yellowcake in Sum

|Includes:BJRI, Centrus Energy Corp. (LEU)

BJs Brewhouse, BJRI has had a very good 2010 and a recent 20% pop after earnings.   The stock has nearly doubled since I first wrote about it 11 months ago on Seeking Alpha in this post.   I still like it for the long term as management  appears to be executing well.  Be cautious about buying it at its current levels. A market correction may allow you to acquire the stock at lower prices.

A speculation for the next 12 months in the uranium area is Usec, Inc, USU.   They are involved in operating centrifuges. There has been recent positive developments including loan guarantees from the Dept. of Energy.  I like nuclear power as a possible area of agreement between a Republican House and the President.  Construction of nuclear power plants could create many jobs. 

4 year chart, weekly bars


There are a lot of market indicators that are turning down now after a 2 month rally.  Depending on how you measure it, one might be able to say the rally stalled 10 or more trading days ago.  One of the quickest and least complicated technical indicators of market activity and that tends to trend for weeks at a time is the McClellan Summation index.  

In brief, the "McSum" calculates a number based on the advancing and declining issues on the NYSE on a daily basis.  It's been kept since the 1960s.

You can follow it quickly and simply on a daily basis here.   I use 6 to 7 consecutive trending days as a signal of a turn.  Yesterday was day 6 down on the NYSE.  I have other variations on that signal so use your good judgment learned over time. A lot more information about how it is calculated can be found here.



Disclosure: long BJRI, USU

Stocks: LEU, BJRI