One thing I love about swing trading is that it gives you a chance to capitalize on hot sectors.
This differs from day trading, where you’re looking for setups that will play out that day, regardless of stock or industry—though these tend to be low-float names.
In fact, the great setup I continue to see over and over again is the morning fader pattern.
It appears every day during my Premarket Prep session.
Read my recent blog post to learn more about it.
But back to swing trading…
Swing trading is the happy medium between day trading and long-term investing.
This means you’re not glued to your computer or phone, and you’re not micromanaging your trades.
It also means you don’t have to wait months or even years to realize a decent return on your investment, like in a typical buy-and-hold strategy.
I talk and write a lot about swing trading. Here’s my intro article on the subject if you’re unfamiliar with it.
Swing trades give you day-trade-like gains but take longer than one day.
And the price action of the sector in favor is frequently driven by the mainstream media, like it or not.
You’re probably asking, “why am I talking about swing trading today?”
Because there is, in fact, a hot sector right now that I have my eye on, and if you’re a swing trader, you should too…
I think nuclear energy stocks are the next big play, particularly for swing traders.
And within that sector, I like uranium names. I have several on my watchlist, which I will tell you about a little later.
So why is nuclear energy on my radar?
Table of Contents
The Sentiment is Changing Towards Nuclear Energy
When you hear the term nuclear energy, I bet the first thing that comes to mind isn’t exactly “clean” or “safe.”
And I get it…
Most people still associate the term with Chernobyl, Fukushima, and other unforgettable disasters.
But that perception is rapidly changing as the world faces one of the most challenging energy crises in decades.
Much of this is due to geopolitical tensions in the Mideast and Russia/Ukraine.
And don’t forget about AI’s insatiable appetite for energy. Data center demand for power is growing exponentially, primarily due to the boom in AI technology.
Here’s a graphic of what that looks like in the U.S.
And get this…
Three Mile Island, the site of the worst nuclear disaster in the U.S., just announced plans to reopen its plant and sell power exclusively to Microsoft for its AI business.
So, with all the different energy sources out there, why is nuclear power suddenly back on the table?
1. The Push for Cleaner Energy Sources
We all know that fossil fuels are a problem. Though they’ve powered us for over a century, coal, oil, and gas are wrecking the planet through carbon emissions and pollution.
The quest for greener alternatives has become increasingly prominent as countries worldwide try to meet ambitious climate goals.
Nuclear energy, once considered the worst of the worst in terms of potential risk, is now being seen as a smart green alternative.
Why?
Because nuclear power plants don’t emit CO2 during operation.
They produce electricity in large quantities while keeping the air clean.
Unlike solar or wind, which can be intermittent, nuclear provides steady, reliable power 24/7.
2. Advancements in Technology Mean Safer Nuclear Power
Modern reactors are designed with multiple layers of safety features.
I’m talking about failsafe mechanisms, automated shutdown procedures, and passive cooling systems that prevent meltdowns even in the event of a failure.
Small Modular Reactors (SMRs) are another major innovation, designed to be more flexible and significantly safer than the massive power plants of old.
The benefits of clean, consistent energy now outweigh the risks, unlike the case many years ago.
3. Energy Independence and Geopolitical Stability
Now, let’s discuss energy security. Recent geopolitical turmoil—whether it’s the conflict in Ukraine or tensions in the Middle East—has sent energy prices through the roof.
Oil and natural gas prices are incredibly volatile, and when supply chains get disrupted, the whole world feels it.
Unlike an oil well, once a uranium plant is up and running, it isn’t vulnerable to the same geopolitical shocks.
Uranium, the fuel for nuclear reactors, is relatively abundant, and its supply chains are much more stable.
Countries are starting to see the value of nuclear power not just for environmental reasons, but for maintaining energy independence and stability in a volatile world.
4. It’s Efficient, Really Efficient
You want the most bang for your buck, right? Well, nuclear energy delivers on that front too.
A single nuclear reactor can generate vast amounts of electricity from a relatively small amount of fuel.
Take a look at the comparisons:
…Which Brings Me to My Current Swing Trade Watchlist
Speaking of uranium’s high efficiency, I’m watching these plays on nuclear energy.
They are lower-priced stocks (no, not pennies) that have been trending recently and have the potential to generate 10 to 20%* in a few days.
Let’s take a look at two examples I’m watching:
Energy Fuels (NYSE: UUUU) is the largest producer of uranium in the U.S.
UUUU 5-Day, 5-Minute Candles Chart; SteadyTrade
Cameco Corp (NYSE: CCJ) is one of the world’s largest producers of uranium.
CCJ 5-Day, 5-Minute Candles Chart; SteadyTrade
My Final Thoughts
Between the current global crisis and the off-the-charts growth of AI, energy demand is on an upward trajectory that knows no bounds.
And the search for clean energy makes the nuclear solution more popular than ever.
Remember, I said the media drives swing trades…
Well, it loves the nuclear comeback story, which means that any names related to the sector, i.e., uranium stocks, are on a run.
If you’re interested in swing trading, I urge you to watch these plays.
And I also urge you to subscribe to our IRIS system.
I created IRIS to apply my long-time swing trading strategy to a tool everyone could use.
Subscribers to the program get weekly analyst reports, training webinars, and best of all, access to the IRIS system itself.
The tool operates much like ChatGPT to produce screeners, trading plans, and more.
If you want to master your swing trading strategy, try our AI-driven tool today!
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade
P.S.
Speaking of the AI energy problem, I think I’ve found yet another solution.
I call it “Eternal Energy” and it has the ability to produce the same amount of energy as the following:
- 4,350 gallons of oil
- 590,000 cubic feet of natural gas
- 22 tons of coal
- 16 tons of lithium
- 3 million solar panels
- And 412 wind turbines
All of this power could last 4 billion years and come at the cost of only 4 to 5 cents per kilowatt hour…
It was founded by one of Elon Musk’s former business partners.
This company is poised to generate revenues hand over fist. And why wouldn’t it?
It’s the answer to the AI power bottleneck.
So how can you benefit from this?
Click here to learn how… You really don’t wanna miss out on this opportunity!