Fresh Ideas for a Levitating Market

Bears seem to have fumbled a few opportunities today to truly bring this market to its knees, as the resilience of the energy sector likely galvanized buyers to try to salvage other parts of the market, like tech. 

With energy still strong nearly across the board, we want to put it the work to identify ancillary sectors which often fare well when oil is in bull mode. 

One such group would be the uranium stocks, housed in the URA ETF. CCJ is the larger, more liquid name, and the that stock has been acting particularly well with a bullish volume pattern, to boot. If CCJ can keep holding $12 it will be hard not to test out a long there soon. 

Another uranium play which has impressed of late is Energy Fuels, Inc.,, below on the daily chart. Its UUUU ticker, while easy to remember may be off-putting to many a trader in that it smacks of being a too-risky penny stock.

In reality, though, UUUU is trading nearly 2 million shares today and is sporting a bullish volume pattern of its own of late (bottom pane of chart). When combined with the CCJ volume pattern, it leads me to believe that uranium stocks are "under accumulation" by large market players and could easily sustain a fresh leg higher with energy, especially as UUUU flirts with an obvious price breakout to what would be multi-year highs.