Uranium: The Bipartisan Issue to Keep Civilization Afloat

As we head towards summer driving season amid various re-openings and easing of restrictions as more and more Americans suffer from cabin fever, the potential for $4, even $5, per gallon gasoline is becoming increasingly realistic. If so, amid rising food, lumber, copper, and home prices, you can be sure that inflation fears will grow rapidly for Americans not currently even thinking much about rising prices. 

In that scenario, viable alternative energy sources tend to become more widely discussed. Uranium is one we have noted previously as, perhaps, being to this cycle what solar/wind power was back in the Q1/Q2 2008 run-up we saw in oil prices. 

And just this morning, to support that view, there was a Reuters report that the Biden administration has signaled privately to lawmakers that it supports subsidies to keep existing nuclear plants from closing, needing the plants to meet U.S. climate goals.

As a result, uranium plays are hot alongside energy stocks in general this morning, even as the the broad market bounce is mixed. 

CCJ, a premier uranium miner, reports earnings later in the week. But other holdings in the URA ETF (daily chart, below) should be stalked for longs, such as DNN UEC URG UUUU. 

Another aspect of uranium is that we are talking about an alternative clean energy sources which now seems to have broad, bipartisan support at a time when political tensions are, of course, running high. If there is one unifying theme which can help to alleviate another potential spike in oil prices it may very well be the pragmatic nature of turning to uranium and nuclear energy.