The past year’s been one geopolitical blunder after another.
You’ve got the botched Afghanistan withdrawal, the proxy war in Yemen…
And finally, the Russia-Ukraine war in Eastern Europe.
In each of these cases, some participants drastically underestimated the costs involved in a conflict.
They’ve also missed the “second-order” risks involved — especially in the energy markets.
Germany is the poster child in this case.
They kept defense spending low for decades, built out Nord Stream 2, and completely underplayed the risks of dealing with NATO brinksmanship.
Now they’re stuck in a bind, where they have to import gas from Russia.
Whoops.
France, on the other hand, is faring a little better because they’re still bought in on nuclear.
While Germany plans on shuttering its last 3 nuclear reactors, France’s Macron is looking to build out as many as 14 new reactors.
Here’s the wild thing:
If Germany magically switched on all its nuclear reactors right now — including those it already shut down — it would have ZERO need for Russian Gas.
However, because “nuke” became a dirty word over the decades, their citizens are bearing a massive cost…
But I have a feeling global leaders are warming up to the idea of nuclear power, and the markets are responding in kind.
Now, there are a few direct nuke plays to work with. However, the best momentum could be in the uranium industry.
Here’s a look at 4 Uranium names that you can play into the end of the year:
CCJ Chart
Cameco (CCJ) is the whale in the industry and will be the “go-to” name for funds that need a liquid name to buy.
It’s coming into a very long-term level from 2011 after the Fukushima disaster. Above that, we could see it trade into the high 40s.
UUUU Chart
Energy Fuels Incorporated (UUUU) is a smaller, US-based name with projects in Wyoming and Utah. It’s seen price acceptance in this range and looks ready for another move higher.
DNN Chart
Denison Mines Corp (DNN) looks like the others and has a key volume shelf just above current prices. If it clears, $2 should be up on deck next.
One word of caution on this name:
We’ve seen multiple instances of options-related shenanigans going on in this stock. If momentum kicks in within the sector, it may trade a little differently, and will have different “games” being played with it.
UEC Chart
Of note here is that Uranium Energy Corporation (UEC) has already broken out above its recent highs, exhibiting relative strength.
These are the best uranium stocks to trade. They are very liquid and when the sector gets moving, they can really start picking up steam.
There’s one more uranium play, and it has pure exposure.
It’s impossible for a retail trader to buy uranium futures, but we discovered a unique “physical” play for our Precision Volume Alerts members.
Go here to learn more about Precision Volume Alerts… and how you can join to grab this name now.
