During a typically volatile FOMC week Uranium stocks got hammered yesterday and this morning they are gaining back yesterday’s losses. In the course of my normal risk management, I released URNM in favor of prioritizing watch list item NXE and other individuals like UUUU and UEC. From yesterday’s trade log:
Okay so, played again by the FOMC week/political interference with the markets combo. It’s not the first time and it won’t be the last for this risk manager. But it sure does give the impression of some serious b/s in this market when a sector that is about to get good news tanks hard the day before.
Here is the news that is driving the recovery in Uranium stocks:
US Senate approves bill to ban Russian Uranium imports
“Wyoming has the uranium to replace Russian imports, and we’re ready to use it,” said U.S. Senator John Barrasso, the top Republican on the Senate Energy Committee, in a statement. Barrasso is from the state of Wyoming.
“Our bipartisan legislation will help defund Russia’s war machine, revive American uranium production, and jumpstart investments in America’s nuclear fuel supply chain,” he said.
Add this to the positive supply/demand fundamentals that I X’d about on April 28 and the picture sure does look positive. Mine supply from producers is under stress, and that is a positive case for prospects like the aforementioned NXE. You can click the graphic for the article:
Okay, now back to our regularly scheduled FOMC week mayhem.
More likely due to the bellweather stock in the market, Cameco. The sell off started during their earnings call which the market didn’t like. They are still digesting the massive Westinghouse purchase and integration of becoming a full nuclear company and not just a miner, but as they go, so goes the sector. The Russian ban I think has been long baked into the cake. Only because Ted Cruz held it up in the Senate has it been not already enacted (suspect he may be lobbiying for oil favors)
Uranium is a bull in buck mode and will try to throw you off. It’s a matter of whether you believe in the long term thesis. If so, pick your horses and hold on for the ride, letting big drops be a buy op and trim winners during spikes to deploy later. But hold the majority and just hang on. Again, if you beleive in the thesis.
Brilliant! Thank you for that. You obviously watch the sector closer than I do. It’s the lot of the macro guy. Too many components to micromanage each. :-(
nice