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Friday, September 26th
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“We become what we behold. We shape our tools, and thereafter our tools shape us.”
– Marshall McLuhan
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Major wins on AAPL, TSLA and NVDA…
And *NOW* this 87% accurate “stock finder” is flashing on a new ticker!…
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Major Market Events
- Fed Stays Cautious on Inflation — Officials signaled sticky prices aren’t reversing yet, keeping the path of rate cuts uncertain
- Trump Targets Tariffs Again — New U.S. levies on drugs and trucks are set to start in October, adding to trade pressure
- AI Spending Surge Raises Bubble Talk — Heavy debt-funded investment in data centers sparks concern revenue may lag, echoing dot-com risks
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🤔 My Thoughts
When a Rising AI Tide Doesn’t Lift Every Nuclear Boat
AI needs power… but you still have to be picky with nuclear names
On yesterday’s Profit Panel, I made a simple point: even with the AI power crunch — an seemingly everything nuclear-related surging, you can’t just throw darts at anything “nuclear” and expect it to work.
We looked across the nuclear power space and saw very different behavior. A few tickers tied to headlines were red on the day. Others with real businesses — or broader baskets — held up better.
Here’s what I’m seeing:
Some names are still story-first. I called out Oklo (OKLO) as a non-revenue company.
That means it’s mostly a promise right now. Stories can run on good news, but they can also give back gains fast because there isn’t steady cash flow under the hood. Think of the DotCom boom decades ago — the first to fold and the biggest losers were pre-revenue hype names.
Then there are operators. Constellation Energy (CEG) is a business with real customers and cash flow. NuScale (SMR) is a real company, too, even if it was soft on the day. These can still pull back with the market, but at least there’s something measurable to analyze beyond a press release.
We also checked Rolls-Royce (RYCEY) and the URA uranium ETF. Those were steadier while the headline names wobbled.
That’s another way to see the difference: single, early-stage stories can swing a lot; diversified baskets and established operators often move in a tighter band.
Why is this happening? It comes back to the power bottleneck. AI data centers need steady, 24/7 electricity.
That demand doesn’t go away because a stock has a red day. In my view, that’s why the energy providers — the companies that can actually deliver reliable power and fuel — are likely to see the real money over time. I said it on the show and I’ll say it again: the AI theme only works if you can keep the lights on.
So how do I handle it?
- I separate stories from businesses. I’m careful with pre-revenue names. They can move, but I size smaller and I’m quicker to take risk down if the story stalls.
- I favor operators and baskets when I want exposure without drama: examples are CEG on the power side and URA for a wide basket of uranium-related companies.
- I keep my entries patient and simple. If something’s hot and stretched, I don’t chase the spike. I’d rather see price calm down and then build a position in steps. If I use options, I keep risk defined so I know my worst-case on day one.
At the end of the day, AI’s need for power is real, and it will keep pointing capital toward reliable generation and fuel.
But a rising tide doesn’t lift every boat — especially not the boats that don’t have engines yet.
Be picky. Prefer real businesses with revenue and baskets when you want staying power. Use smaller size on story names, and don’t let a headline talk you into buying a chart just because it’s gone vertical.
Click here to watch the on-demand replay!
And don’t forget to register your spot here to join us next time we go live!
To Better Trading,
Alex Reid
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