With so many stocks joining in on the bull market, it can be hard to keep track of leadership.
But one group that definitely stands out and deserves a mention is Uranium and Nuclear Energy.
These stocks were big leaders during the commodity bull run of 2020-2021, and they have been major leaders again in recent months.
But, it’s less about the recent relative strength, and more about the structural patterns at play.
Here’s the industry leader, Cameco $CCJ breaking out of a monster base:
After more than a decade of underperformance for the alternative energy stock, CCJ is breaking out to new all-time highs just as it looks to reverse trend versus the broader market.
The trend reversal shown in the lower pane suggests more leadership from CCJ in the future.
How can you not buy this 18-year base breakout?
And when benchmarked against its industry peers instead of the S&P 500, it’s clear CCJ is the premier vehicle in its space.
This chart shows it climbing steadily higher versus the Global X Uranium ETF for the past 15 years. I expect this leadership to continue.
I like the next one even more. Here’s America’s emerging uranium producer, Uranium Energy Corp $UEC:
According to UEC, they have the highest degree of leverage to Uranium prices compared to all other uranium miners globally. I don’t know if it’s true, but I like it.
What really matters here is whether or not these are valid base breakouts.
If these multi-decade consolidations are resolving higher, which it looks like they are, we have to be involved.
And when I see these monster bases, I immediately think of leaps.
Usually, I want to go way out-of-the-money and buy as much time as possible with these patterns.
They need time to work. They are often accompanied by false starts and sloppy price action. It’s hard to judge exactly when the resolution and reaction rally is coming.
However, both CCJ and UEC have been knocking on the door to new highs and absorbing overhead supply for some time.
I think these breakouts are finally the real deal. I think the mega-trend of nuclear energy is just getting started.
So, I’m not just buying leaps in UEC and CCJ. I’m already in those positions as a way to add leverage to my long-term bullish thesis.
But, due to the recent price action, I also want to juice my short-term exposure. I think we’re about to see some big reaction rallies out of these bases.
I think these charts are about to go nuclear… get it?
We’ll be putting a kicker on these uranium stocks via Breakout Multiplier next week.
If you are interested in adding some juice to your regular portfolio, check out what we’re doing.
