URRE Update

URRE has been a long time favorite as a large stage 1 base that should enter a primary uptrend (despite the market) and although we've been following it for well over a year, it has done a lot of work through 2013 and I suspect it's moving toward a stage 2 breakout and thus a bull market or primary uptrend.

I'm not sure if I just have some bad data intraday or there was just an odd print, but I'm not concerned about it. This is a long term position, not a trading position.

URRE is up around 8% today which puts the core long up as well, in my case about 8% as well.

While intraday trade is very spotty and doesn't give good 3C signals, other indications look excellent and I'm talking about a lot more than just today.

 This is the odd intraday print.

On a daily chart, as I mentioned to several of you who emailed me about it today, watch the closing candle. I warned to watch out for a long upper wick, that's resistance in the area which you can see above. The volume on today's move looks good, it's not through the roof, but volume is a subtle art, it's not just looking for those spikes than any amateur can see.

The daily 3C chart shows it has been doing a lot of work for almost 2 years with a lot of strong accumulation through 2013. Compared to similar past assets with a similar divergence, I've seen about a 5 year run of 2500%, I'm not predicting that here, but almost identical assets have performed in that manner.

On a 60 min chart you can see the failure at the parabolic move, remember our recent TWTR short based on the parabolic concept, well here it is again, this is why I don't trust those moves.

Once again, accumulation looks good so it's not surprising it's making a move that may not breakout through resistance today, but I think it's not far from doing so.

I had to modify the Trend Channel a bit, it needs to fit the character of the stock and now it does, the stop out on a closing basis would be pretty darn close to the $3.15 area, but even here, so long as the 3C charts hold up, I'm inclined to take a much larger view, one of the few assets I'd consider to be more of an investment than a trade.

I think URRE is fine, that's coming from the long term investment p.o.v. If you are more concerned with locking in an 8% gain in a day, then by all means, but I can't say that this will pullback to an area that would make it worthwhile. I'm content to just let URRE do its thing and as noted above, the nearly 2 year process in URRE looks like it's ready to start making it's move to the next stage which would be mark up or in this case a primary uptrend which is also known as a bull market.

I'd encourage you to manage URRE more like an investment than a trade which may mean cutting down the number of shares to allow for a wider stop, you can always add them back. This is not the kind of asset in which I'd keep a tight stop on.

Other than that, I don't see anything that concerns me, but once again that's from a long term point of view. URRE, because of spotty intraday trade on 1-5 min charts is not a good choice for a trading asset.