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Tuesday, September 23rd

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“The hardest thing to explain is the glaringly evident which everybody has decided not to see.”

– Ayn Rand

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This tool is spotting momentum moves before they happen!

Details inside.

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Major Market Events 

• Powell Flags No Easy Path — Fed chair warned rates remain “modestly restrictive,” leaving cuts possible but uncertain
• Stocks Slip After Fed Talk — Markets dipped as Powell highlighted the Fed’s dual challenge balancing growth and inflation
• Nvidia Underpins AI Buildout — Chipmaker’s partnership with OpenAI highlights the sector’s central role in powering AI growth

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🤔 My Thoughts

Uranium’s Still Climbing — Here’s How I’d Get In Without Guessing

Get paid to wait with DNN, or cap risk with spreads

 

Uranium keeps pushing higher. Yesterday I showed what happened with SMR; today I’m laying out how I’d start fresh positions.

On yesterday’s Profit Panel, I walked through a simple way I’d get involved now without chasing the top.

First, the setup:

I like the theme because the power story is real. Data centers need steady electricity. AI growth is pushing that demand to extremes. Policy is leaning toward reliable sources.

That backdrop hasn’t changed. On the show, Chris Pulver and Geof Smith pointed out the obvious leaders on the board — the URA ETF, and single names like UEC — running well. I’m not arguing with that strength. I’m just careful about buying new highs without a plan.

Here’s how I’d approach it today.

Step 1: Let price prove it.

I want a daily close that holds — not a midday spike. If the ETF (URA) or the name I’m targeting closes strong and stays strong the next day, that’s a green light. If it pops and fades by the close, I wait. Watching is a decision.

Step 2: Use a “get paid to wait” entry on a cheaper name.

For a starter position, I like cash-secured puts on DNN (Denison). In plain English, that means I’m willing to buy shares at a lower price of my choosing.

If DNN dips down to the strike I sell, I get assigned at that price and own the stock with a built-in discount. If it doesn’t, I keep the premium and try again. I set my strike near an area I’m happy to own — which for me is recent support — not some far-out lottery ticket.

Step 3: Keep risk defined if you prefer options only.

If you don’t want shares, use a put credit spread. That consists of selling one put below current price and buying a lower-strike put — both with the same expiration.

Using this kind of trade, your worst-case loss is capped on day one. Again, the point is simple: know your max loss before you click.

Step 4: Size small and add only on proof.

My rule of thumb is to risk about 0.5%–1.0% of the account on any one idea. Start with a pilot piece. If the next daily close keeps the trend intact, you can add a second piece. If a close back below obvious support shows up, I step aside and free the cash.

Step 5: Have exits before you enter.

For spreads, I’m happy to take around +50% and move on. For shares from cash-secured puts, I’ll trim into strength and keep a line I won’t let price close back below. No heroics. No “it’ll come back.”

Where do broader vehicles fit?

If you want a basket of uranium-related stocks, URA is the simple route.

If you want a single stock with more history and real operations, UEC is on my list too — credit to Chris and Geof for flagging both on the show. My personal “starter” remains DNN because the cash-secured put lets me either get paid or own lower.

Bottom line, the uranium move is still real, but I won’t chase it.

I’ll wait for closes that hold, use cash-secured puts on DNN to get paid while I wait, and keep risk defined if I use spreads. Small pieces, clear exits, no need to guess.

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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