Nuclear Surge:
The uranium names have been at the forefront for some time now as countries begin to reconsider shutting down their nuclear plants for their own energy security. Stocks in the space are showing that belief with positive action. CCJ for example (full disclosure I am long), has broken above a bull flag pivot at the round 30 number. BWXT has been digesting a strong 20% plus move the 2 weeks ending between 2/25-3/4 very well here. I am just a technician at heart, but it is always good to take a look at a different viewpoint, and thanks to Will Nutting for sharing this (@Nutstuffalpha). “A taking up of excess supply argument is utter rubbish. First of all uranium spot is not high enough for a lot of the mines to come on-line. Secondly, when it is high enough it takes time to get mines running again. Thirdly even when mines come back there aren’t enough large ones ready to go to fill supply deficit. If Russia’s uranium disappears we have a MAJOR supply issue and most importantly Sprott is buy about 350K lbs a day which equates to 1 nuclear reactor’s yearly fuel disappearing every 48 hours! This is SO bullish I sometimes think I am making it up.” Below is the chart of UUUU, and long-time readers of mine know my dislike of names trading under $10, and this one is attractive to me here. Last week CLOSED above the very round 10 number, as 3 of the prior 5 weeks were above it intraweek, but with zero finishes north of the figure. It did that on the WEEKLY chart with two consecutive CLOSES above 10 the weeks ending 11/5-12 rising a combined 38% before giving back 50% over the next couple of months. Obviously, it is imperative for it to remain above that level now, and if it does so could be in for a robust move higher.