We're Buying Uranium... Again

The bulls are back in town.

After a monster performance two weeks ago, the indices put on another impressive rally off the recent lows.

The S&P 500 rallied 1.4% higher this past week, while the Nasdaq gained an impressive 2.9%. 

And once again, it wasn’t just a few stocks… 

Everything from Mega-Cap tech to growth stocks showed out. We’ve also seen some epic moves in crypto… 

Bitcoin rallied above $37,000, and Ethereum reclaimed $2,000 for the first time in months. 

Needless to say, we’re encouraged by these big moves. And we’ll have much more to say about the opportunities shaping up in stocks and crypto next week. 

But today we’re going to focus on a corner of the market that most traders and investors ignore… and that’s URANIUM. 

Uranium, also known as “yellow cake,” is what powers nuclear power plants. 

And yes. Nuclear energy is a contentious topic. Many believe it's the world’s solution to climate change, since it’s one of the world’s energy rich and greenest fuel sources. Others fear it because of nuclear meltdown and waste risks. 

But there’s no debate about this… 

Uranium has been on fire lately. 

This year, the spot  price of uranium has surged 56%. It’s now trading at the highest level since 2007. 

For most people, it’s very difficult to directly bet on rising uranium prices. But we can do the next best thing, and that’s own uranium stocks. 

The Global X Uranium ETF (URA) is a great way to do this. This holds a basket of different uranium stocks, making it a great way for everyday investors and traders to get exposure. 

This year, URA has rallied 34%. That’s more than double the S&P 500’s return in 2023. 

As impressive as that is, uranium stocks are likely just getting warmed up. 

We’ll explain why in this issue. But we want to first welcome you to The Discount Weekly. Each week, we examine the biggest issues facing traders and investors… and explain what they mean for your wealth.

Today, we’re performing a deep dive on uranium stocks… and they could be one of the best trades of the decade.

Let’s jump right into things… 

A Sleeping Giant Has Awoken

Not that long ago, people would laugh at you if you said you own uranium. 

That’s because they were dogs!

URA plunged 95% between 2011 and 2020. The industry was an absolute disaster!

This happened for a couple reasons. For one, commodities as a whole were in a bear market. The Fukushima nuclear accident also took place in March 2011, which absolutely killed investor appetite for uranium stocks.

But like many commodity stocks, uranium stocks bottomed during the COVID market crash. 

Since then, they’ve quietly emerged as some of the market’s best performing stocks. 

Since March 2020, URA has spiked 287%. The Nasdaq 100 ETF (QQQ) is up about 130% over the same period, while the S&P 500 is up 102% over the same period.

Uranium stocks have massively outperformed their peers this year. 

The Energy Sector SPDR Fund (XLE) is down 4.6% on the year, compared to URA’s 34% rally. 

Other “green” energy stocks have performed even worse. 

In fact, the Solar Energy ETF (TAN) has plunged 43% in 2023! Wind stocks aren’t faring much better as the Wind Energy ETF (FAN) is down 18%.

It’s Early Innings for Uranium Stocks

At The Discount, we see uranium stocks will continue to be outperformers for years. 

And we say this for a couple reasons…

Let’s start by looking at the monthly chart of URA.

After bottoming in early 2020, URA hasn’t just bounced back. It’s entered a new uptrend… one that’s still likely in the 3rd or 4th inning. 

In fact, everything about this chart suggests that uranium stocks may have just recently begun a multi-year bull market!

Of course, you might be wondering about the broad market at large. What if the major indices enter a bear market soon?

Well, here’s the thing about uranium stocks…

They often do their own thing. Remember, they fell between 2011 and 2020…during a time when both the S&P 500 and Nasdaq performed exceptionally.

The uranium market is also tiny compared to most industries. Because of this, it can zag when the broad market zigs. 

The chart below also tells us that uranium stocks will outperform the market for years to come. 

Here, we’re looking at the performance URA versus SPY. When this line was falling, it meant uranium stocks underperforming the S&P 500. 

We can see that this ratio also bottomed in March 2020. Since then, it’s been trending higher. It now appears ready to begin its next leg up. 

In short, this chart indicates that uranium stocks should outperform the broad market not just in the months ahead but for years to come.

To profit off this long-term trend, consider picking up shares of URA. You could also consider speculating on leading individual uranium names such as Cameco (CCJ) or NextGen Energy (NXE). We update our followers in our FREE Telegram Channel on our specific trades for the short, mid and long term.

If you are interested in crypto exposure for Uranium, be sure to check out: http://uranium3o8.com … It is the FIRST token backed by physical uranium!

Join us in our FREE Telegram Channel. We update our followers in real-time, with common sense analysis on the trades we are taking, currently in, and keeping our eye on. Common sense analysis that anyone, from beginner-to-advanced, can easily understand and take advantage of.

P.S. - If you are interested in LIVE Trading, Monday - Friday mornings, we have a LIVE Day Trading Room with over 50+ professionals, intermediates and beginners. Give it a test drive 7 Days for $7 here.

See You Next Sunday!