Rare, Clean Energy

From the Energy Fuels, Inc. (UUUU) website:

Energy Fuels is the leading U.S. producer of uranium and vanadium, and an emerging player in the commercial rare earth business.

With uranium gaining traction more and more as an acceptable clean energy alternative given its domestic, abundant, and efficient nature, the fact that UUUU is an emerging player in the rare earths space is significant, too. Thus far into the Biden Administration, we have seen various not-so-subtle hints that there is a competitive premium being placed on domestic rare earths, lest China eat our lunch there and gain a notable advantage on the race to the future. 

Thus, while speculators are still out in full force partying in names like AMC or even RIOT (despite Bitcoin itself backing off $60,000 initially), my preference is still stick with names with a potent thesis like UUUU and to trade around them at the edges, meaning to trim into pops like I did with Members this morning and seek to buy dips when they firm up a bit. 

Elsewhere, I am looking for a relief rally in bonds to correlate with gold and her miners sustaining an under-the-radar rally. Of course, we do have the FOMC this Wednesday which is a notable risk. But I suspect much of the initial leg of the bond market front-running The Fed has been priced in. Indeed, I expect rising rates to be a long novel and we are barely through Chapter One.