This morning I on “The Long and the Short of it” on Money Morning Live, I shared a stock late into the session. It was only on the screen for a few minutes, but it encapsulated a lot of what I had to say.
You see the one thing that seems apparent is that the energy trade is not going away. If Einstein were a trader he would have written out his equation as E = MI2 (that’s M for market and I for inflation.)
Am I wrong? Investors see inflation going on all around them and they get reminded of it every time they pump their gas. Not to hard to figure out why energy stocks keep going higher.
But there is all kinds of constraint around oil and gas right now. Alternatives to carbon energy on the other hand, not so much.
Now wind and solar still have a long way to go in terms of raw efficiency for output. But nuclear power, that’s another story. That’s why I’m hot on the Uranium trade (sorry, pun intended).
As I said in the program, I love this little chart! Energy Fuels Inc. (UUUU).
Now isn’t that just……sweet looking?
Over the 20-day moving average, above the upper Bollinger, breaking out from a squeeze, just about ready to pop above the 50-day and 200-day SMA lines, volume spike yesterday and price holding today.
That IS sweet looking. But that’s not even the sweetest part.
What is so great about UUUU is that the stock is optionable! It’s under $10 a share, but it still trades options!
That means you can target some great opportunities on a growth stock and type up a smaller amount of cash. Now THAT is sweet!
I’ve got more to say on this so check out the long and the short of it on money morning live.
June 08 2022