Mining for Winners in Any Market

, ,

Nuclear Revival Spur Uranium Miners Higher, Uranerz (URZ) Leading Sector

In Featured Company News, Market Analysis, Stock Movers on February 3, 2012 at 8:09 pm

Get a FREE 30-Day Trial of my Members-Only Premium Stock Analysis Service NOW!

 

We are in the midst of a powerful rebound in our select uranium miners such as Uranerz (URZ).  The charts indicate an explosive 220% rebound since October lows.  For months we sent out reports that Uranerz will outperform as they are well funded and have already initiated construction on their Nichols Ranch In Situ Uranium Project, which should be producing uranium by the end of the year.  They also have agreements with Cameco and Exelon, two major nuclear players.  In fact Uranerz is leading the sector over the past three months regaining its 200 day moving average and rallying over 225% from October lows.

See the map of their enviable land position between Uranium One and Cameco by clicking here.

I wrote to my readers back in October, “In relative performance to the S&P Uranium stocks returned to 2009 levels, extremely oversold and demonstrating negative divergences for several months.  Keep your hands on the nuclear plow.  If one has not invested in this sector, this is a chance to buy wholesale.  The coming months will give geometric gains as safe, modern, clean and affordable nuclear reactors come online.  Stay steadfast to reap the coming rewards.”

Check out the recent interview with Dennis Higgs, Executive Chairman of Uranerz, discussing the uranium market and updating us on current developments in the Powder River Basin in Wyoming.  For Dennis Higgs bio as well as the other experienced managers and directors click here…

Gold Stock Trades will not regale you with the growing presence of nuclear facilities throughout the world despite the German and Japanese negative stance.  It is well known that reactors are going to come online in increasing numbers and that uranium will be in rising demand.  In fact, several reactors are being built right here in the United States as well as all over the world.

The U.S. Nuclear Regulatory Commission is scheduled to approve Southern Co.’s application for the first construction permit to build modern nuclear reactors in more than 30 years.  Southern is planning to build two new generational reactors and the NRC is considering a license to build additional newly designed reactors in South Carolina.     Nuclear power accounts for 20% of all electricity being produced in the United States and is expanding with the construction of new safer, efficient and cleaner nuclear reactors.  This is being done all over the world.

The once in a millennium earthquake and tsunami in Japan has triggered a knee jerk panic driven reaction from politicians especially in Germany and Japan.  However, the U.S. Nuclear Regulatory Committee released a study nearly a year after Fukushima stating “Public health consequences from severe accidents are very small…successful implementation of existing mitigation measures can prevent reactor core damage or delay or reduce offsite releases of radioactive material.”  The study, called the State-of-the-Art Reactor Consequence Analyses (SOARCA), looked at worst case scenario situations and its impact on health.  This means the U.S. is going full speed ahead on nuclear while Germany and Japan continue with skyrocketing electricity costs.

It is to be noted that four of the giant Japanese nuclear builders are aiming their sights to countries all over the world especially the emerging nations, which are constantly seeking inexpensive and clean electrical energy.  They are responding to this global need by sending teams of experts to sell the building of a new generation of reactors.

Japan wants to sell nuclear reactors abroad to boost their exports.  The companies that are participating are Hitachi and Mitsubishi Heavy Industries among others.  The Japanese claim that emerging nations can learn from the Japanese Nuclear Experience.    The Giants do have a vocal opposition at home who are criticizing this outreach by calling it hypocrisy and the setting up of double standards.

Japan is impaled on the horns of a nuclear quandary, weighing their thirst for exports against their own domestic naysayers.  Money talks.  The Japanese Nuclear Industry posted an annual profit of over $3 billion dollars which made a welcome addition to their balance of exports.

They have gone so far as to offer interested emerging nations not only the building know how, but they are offering them loans to assist them in this pursuit.  It’s almost an offer that these young nations will find hard to resist in their search for efficient and affordable, clean electricity.

Moreover, there are reports that Germany and Switzerland are fast coming to the awareness that the costs of locking up their nuclear plants will cost large amounts of capital.  Siemens published a report that it would cost Germany more than $2 trillion dollars to wean off nuclear by 2030 causing major deficits.  Imagine they are placing their trust in foreign providers.  It is going from wholesale to retail at great costs to their economies.  Capital will flow to countries that make sane, rational decisions with regard to nuclear.

Recently, Russia and the United States have taken a page from this Japanese imperative.  Formerly at loggerheads during The Cold War, they are now uniting cordially to ensure that nuclear fuel is available for the growing number of new generation of nuclear reactors.

We have remained steadfast in highlighting the importance on our select list of uranium miners right here in the United States.  This means jobs and new ancillary industries rising to accommodate the increasing uranium output.  We are speaking about new cranes, highways and even cities.  We are talking about a U.S. nuclear revival.

How does all this relate to our subscribers?  It is evident that nuclear power in not only here to stay but will proliferate as world demand keeps on growing.  Our select uranium stocks have been rebounded considerably after being left for dead only weeks ago.  Our subscribers are having their patience rewarded.

The German and the Japanese liberals will reconsider their knee jerk political reaction as their policies weaken their once proud credit rating and economic standing.

Disclosure: Long URZ and Featured on http://goldstocktrades.com

 

Comment »

, , ,

Uranium and Rare Earths Leading Market Rebound

In Featured Company News, Market Analysis on January 31, 2012 at 6:52 pm

As we predicted, our uranium and rare earth selections are amongst the leaders during this market rebound.  Their underlying fundamentals are strong enough on their own to propel this move.  In addition, the shorts may be running for cover here.  Lastly, the supply demand equation may be taking hold.

The month of January is a harbinger for what may happen in the year 2012.  This month we have seen both uranium stocks and rare earth stocks outperform the general market despite negative news.  This means the naysayers are having less of an impact as shorts are rapidly covering.

About a year ago we did a series of articles called the “Chinamese Twins”.  This related to a private candlelight dinner held in the White House between the industrial-military leaders of both nations.  (See archives)  The purported arrangements allowed for a strong yuan and a cheap dollar benefitting the interests of both parties at that time.

Fast forward to today, our kaleidoscope reveals a changing situation.  The world economy is affecting previously reached agreements.  The Chinese and the Americans have altered the requirements in the present economic picture.  The Chinese have tried to maintain a strong yuan while the Americans adhered to a cheap dollar.

This brings into focus the specter of the escalation of trade wars with China.  In the 1930’s, it was the Smoot-Hawley Act that exacerbated the Great Depression.  One must believe that the Chinese and the Americans will try to avoid this outcome.

We can only hope that both sides can reach a modus vivendi to avoid a return of the Smoot-Hawley protectionist nightmare which plunged the world into the Great Depression.  Associated with this burgeoning trade war  is the Chinese manipulation of the rare earth quota system of which they are in command.  We recently heard the ruling from the World Trade Organization against China’s export restrictions of critical raw materials.  This may only exacerbate the underlying issue.

Such a trade war goes far beyond economic aspects, but reaches into the very sinews of American national security and defense.  Our phlegmatic Congress should’ve acted long ago to green light and fast-track the development of a domestic source of these critical heavy elements.  Hopefully, they will awaken from their long torpor and rise to the challenges of the times.  Certainly, Alaska has awakened and included Ucore in its 2013 state budget.  Click here to read the press release.  

Another company which is witnessing support from European consumers is Tasman Metals (TAS or TSM.V) who controls Europe’s only 43-101 compliant heavy rare earth asset.  These companies are progressing rapidly to produce a preliminary economic assessment in the near future.  Listen to my interview with Mark Saxon, CEO of Tasman.

The kaleidoscope is a fascinating child’s toy consisting of constantly changing designs when held up to the eye.  Today’s market can best be characterized by the potpourri of unpredictable sequences of objects, which fascinates the eye of the observer by constantly changing patterns.  The combinations and permutations of the designs are infinite and subject to unpredictable eventualities.  The marketplace is very much akin to this device with its infinite unpredictability.

Gold Stock Trades views the current marketplace always trying to make some sense out of the melange.  In early October, we called for an unexpectedly vigorous rally which is still in progress.  While there is a pervasive air of pessimism in the marketplace, nevertheless the rally continues.

 

We feel that this move, particularly in our natural resource sectors, is apt to be a surprise to the naysayers.  In our field of view we observed the record short position in many resource stocks which may be undergoing short covering thereby accelerating the upward moves in a number of our rare earth and uranium mining selections.  Be assured that we are constantly monitoring this situation.  Our projection is based on technical interpretations that indicate a continuation for the S&P500 (SPY) to challenge 52 week highs.  This short term target in the general markets represent a significant milestone in this move.  Should it breakthrough this level, it will have formed a breakout, indicating a continued advance.  One caveat is that sufficient volume must accompany this upward move.

As always we will be monitoring technical developments to determine whether early October’s reversal was the inception of a significant upward move into new highs.  We reiterate that the daily marketplace will do its devious best to confuse and obfuscate the speculator.  The price of lucrative profits is eternal vigilance as we progress along the upwardly rising road of the long term super cycle in precious metals and our natural resource sectors such as rare earths and uranium.

Disclosure: Long TAS and UURAF

Comment »

,

Long Term Trend Up In Gold and Silver Is Intact, Look For High Quality Exploration Companies

In Featured Company News, Market Analysis on January 27, 2012 at 11:34 am

At the end of 2011, Merkel and Sarkozy got together for an unusual emergency meeting.  They pledged to come up with economic salvation.  Immediately the equity markets mounted a year end “Halleluyah” rally.   Bernanke followed Europe’s footsteps in 2012 and expanded the horizon of record low interest rates from Mid-2013 until Late 2014.

 

We respond judiciously to this euphoria.  Politician’s promises are usually a thin blanket for an upcoming cold night.  We have concluded since October that a surprisingly potent rise may occur which would be in reaction to the application of the stimulative paddles.

The European resolution was a response to the Franco-Belgium travails of the widely held Dexia Bank, which has tentacles into France and Germany’s economic foundations.  If this were not enough, the chronic Greek malaise indicated that Zorba was in need of another oxygen mask to rouse him from his hedonistically induced torpor.

A potent upward move in gold and silver in addition to the oversold miners (GDX) is just beginning to occur.    Our scenario was to maintain our long term core precious metal positions even though such a posture was temporarily painful as many analysts concluded wrongly that deflation, bonds and the U.S. dollar were the only safe harbors.

What about the U.S. dollar now?  Note all the media hoopla that regaled us with strength of the dollar recently.  News from Europe and Washington appears to be melting the U.S. Dollar under the cover of all of this stimulative warming.  We have called for this surprise rally we are observing in the face of all this dollar and treasury hoopla.  How uneasy must be the shorts who have been caught by this recent rise.  Short sellers went into October’s market with the largest short position since 2008.  Such a one-sided posture is often punished as the shorts run to cover and thereby add to the upward move.

Technically there have been gaps from 2011 that need to be filled on the upside in precious metals and miners.  We note that institutions have been hit hard by the gold’s price decline.   Hedge funds must’ve been selling stocks that they held in common in order to meet margin calls.  Additionally this consideration may have influenced collateral damage among investors.    Perhaps the current rise may indicate the recent downtrend has been broken to the upside.

 

Silver (SLV) appears to have found support at its 2011 lows.  There are downside gaps that should be filled to the upside.  Silver will encounter resistance around $38.  Silver has reached a record oversold level indicated by the RSI and MACD in 2011.  This indicated an interim bottom in silver.  Monitor the bullish crossover on the MACD which confirmed the already constructive reversal on the stochastic and RSI.

Gold appears to be making a reversal at oversold and long term support levels breaking a 5 month downtrend.  Notice the strong volume accumulation as The Fed announces negative interest rates until late 2014.  This is bullish for precious metals.  In early August through October we advised a hold and urged caution.  Since it pulled back it provided two secondary buypoints where we said it is buying time while others preached that the gold and silver market bull market had ended.  Now gold appears to be bouncing off our buypoints similar to January 2011 and regaining its 50 and 200 day to the upside.  Now the weak hands will come back at much higher prices.

Stay tuned to my free 30 day trial to my premium newsletter for market timing and stock selection.

One company I wrote a report on last Thursday in my premium service is engaged in nine joint ventures some of which are with the big boys such as Agnico Eagle at Ester Dome near Fairbanks, Alaska, which has just announced encouraging drilling indications.  Some of which are right next to the big boys in the world famous Cortez Trend in Nevada, where Barrick is continuing to announce world class bonanza discoveries as their own. In September, Barrick announced that Red Hill and Goldrush were two significant discoveries.  Barrick said on 9-7-11, “These two (Red Hill and Goldrush) discoveries highlight the potential value and opportunities that can be created through a well structured and disciplined exploration program.”

Click here to check out this project right next to Barrick’s Red Hill and Goldrush discoveries in Nevada.

 

Comment »