Nuclear energy is one of the hottest trades in the market right now, and everyone is talking about it. We were early to this theme.
Back in early May, we highlighted New-School Nuclear as one of the hottest growth themes in today’s market. All of the names we outlined in this post skyrocketed over 20% in Friday's session alone.
In late May, we doubled down with An Uptrend by Executive Order after President Trump signed sweeping directives to revitalize U.S. nuclear production. That historic momentum thrust lit a fire under the entire group, sparking the sector’s best single-day performance since 2008.
Fast forward to today, and the uranium and nuclear energy trade is proving it’s no flash in the pan.
The AI Revolution is creating an insatiable demand for reliable power, governments are prioritizing energy security, and nuclear has officially become mission-critical.
This week, the U.S. and the U.K. sealed a $350B deal to jointly develop AI, quantum computing, and nuclear energy infrastructure, sending these stocks soaring yet again.
Our intermarket analysis suggests we're closer to the beginning than the end of this trend:
For years, nuclear stocks lagged the broader market. However, the VanEck Uranium & Nuclear Energy ETF $NLR is now on the verge of resolving a massive base relative to the S&P 500.
A breakout above the 2018 highs would mark the start of a brand-new leadership cycle for this group.
If and when we get the breakout in this key intermarket ratio, we believe the new uptrend will persist for more than a few quarters. Major trend reversals like this tend to last years or more.
The absolute trend is leading the relative trend:
In absolute terms, the VanEck Uranium & Nuclear Energy ETF has carved out a multi-decade accumulation pattern, dating back to the 2007 peak.
On Friday, that resistance finally gave way to the bulls.
The fund is now making new all-time highs, driven by strength across its holdings - from utilities like Constellation $CEG, to uranium miners like Cameco $CCJ, to nuclear technology firms like BWX Technologies $BWXT.
This is the definition of a structural trend reversal.
With AI and data centers demanding exponentially more power, governments investing hundreds of billions in the sector, and major base breakouts across the board, the writing is on the wall.
We want to own NLR above 135, with a target of 198 over the coming 6-12 months.
For most investors, NLR offers a liquid and diversified vehicle for participating in this move. But for those looking for real juice - the kind of trade that can double your money - you need to see this week’s Commodities Trade of the Week below.
Livestock - Commercial hedgers added over 5,800 contracts to their largest net-short Lean Hogs position ever. This suggests that the producers believe the price is high and want to lock in their profits.
Metals - Commercials added more than 25,000 contracts to one of their largest net-long Gold positions ever. Historically, the shiny yellow metal has performed best when commercial hedgers are extremely net-short.
Currencies - Commercial hedgers extended their largest net-long Dollar Index position in years by nearly 7,000 contracts. With the DXY at multi-year lows, the smart money is betting on a mean-reverting rally.
This week, we're outlining two of our favorite equity setups in the uranium and nuclear energy space.
First, let's dive into the names that are leading:
This table includes the components of the VanEck Uranium & Nuclear Energy ETF, filtered by proximity to 52-week highs. We've also included the distance from 52-week lows.
As you can see, Oklo $OKLO is making new highs and is over 1,500% from its 52-week low, leading the pack by a significant margin.
The strength from Centrus Energy $LEU, Energy Fuels $UUUU, and Nano Nuclear Energy $NNE are also notable.
Boss Energy $BQSSF, enCore Energy $EU, and PG&E $PCG are some of the worst performers in the fund, but their charts don't look that bad.
Now that we know what's driving this move in NLR, let's dive into the Commodities Trade(s) of the Week.
Premium members can see the entry and target levels below. 👇
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