Who the fuck else is betting on a renewed stockpiling of our nuclear arms arsenal? No one, which is precisely why the sector isn’t done going higher. Right now there’s a little momentum to this small industry of extreme national importance, which has been cast aside during the ‘green years’ of Barack Obama. In a little more than a fortnight, all of that will change, ushering forth a new era of nuclear energy and weapons that could destroy targets miles deep into the earth’s upper mantle.
Inside Exodus, I’ve created my own little bomb factory, cordoning off the nuclear energy names to get a better idea how they’re responding to news. Old contract plays like $CCJ aren’t fairing as well as the truly beaten down ones, like $URRE and $UEC — for obvious reasons.
According to our industry market timing algorithms, the sector is not overbought — based off historical precedence.
Last, but not least, my GARP index started off the New Year in style — greatly outperforming the Bubble Index — one of the many intended purposes of the index.
It was a fine first day, with banks and all of the important sectors chipping in. Both natural gas and oil were destroyed. However, all of the other commodity sectors did well — further purporting the illusion of inflation, a necessary toxin needed to further the market’s gains.
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Long live the GARP
@FLY – a few dumb questions coming your way:
Could you elaborate a bit on this old contract (CCJ) / new contract (UEC) stuff?
Shouldn’t a potential bottom in uranium futures (UX) or the etf (USA) cause them both to smartly rally?
Cameco is a much bigger, meaningful company, who has lots of long term contracts that were negotiated during the hard Obama days. Stocks like UEC are, essentially, call options on the industry surviving. Hence, the greater the risk, the greater the upside.
If the nuclear industry truly comes back, gains in CCJ will be most sustainable. This is the equivalent to buying any number of crude stocks at a dollar during the low period for crude, hoping for a comeback. Surely those smaller plays crushed XOM.
*edit* URA (Not USA)
Thanks @Dr.Fly
This call reminds me of your brilliant call on FTK. However, I remember you sold it way too early knowing it wasn’t nearly at its top. Your reasoning was that the stock had risen so much that your monetary holdings in FTK had taken up a higher percentage of your portfolio than you wanted.
This time must be different considering that you went all in on a penny stock, and won… as usual!
Part of my reason for selling FTK was because I held it for so long. I was tired of waiting.
This is a great hedge on life for you and the Trumpsters. We go to Nuclear war and your shares go up, but they all get fried, well done. This is brilliant.
Uranium. Cheap bet just like gold in the early 2000’s. I like cheap commodity bets.