Whether a short-term trader or a long-term investor, the uranium industry could offer a plethora of opportunities to take advantage of the current and future upside. For the former, consider using the Direxion Daily Uranium Industry Bull 2X Shares (URAA) for double the exposure.
With the push toward meeting zero-emissions goals, more countries are looking to alternative energy sources to reduce their carbon footprint. One of the options is nuclear energy, which is becoming a more viable alternative as more countries adopt its usage.
URAA provides 200% exposure to the performance of the Solactive United States Uranium and Nuclear Energy ETF Select Index. In particular, this index tracks the performance of U.S.-listed ETFs with a focus on uranium and nuclear energy.
“Uranium prices have reached the highest levels in over 15 years, and the uranium market is seeing incredible growth. But there’s a significant gap between supply and demand that begs further development and investment,” said Direxion Managing Director Edward Egilinsky. “As public sentiment and government support shifts in favor of further expansion, URAA offers traders a unique way to make short-term bets on the nuclear energy industry.”
Trading Nuclear News
URAA offers traders the ability to capitalize on any short-term, news-sensitive price jumps. For example, in recent news, President Joe Biden signed the Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy (ADVANCE) Act that focuses on shoring up the country’s nuclear power industry.
The bill will allow for more speed, efficiency, and cost-effectiveness when it comes to licensing new nuclear reactor projects. Additionally, the bill will also task the Nuclear Regulatory Commission with figuring out ways to expedite the environmental review process attached to nuclear reactor projects.
“Today is a momentous day for our climate and America’s clean energy future,” said Senator Tom Carper, who chairs the Senate Environment and Public Works Committee. “This bipartisan law will strengthen our energy and national security, lower greenhouse gas emissions and create thousands of new jobs, while ensuring the continued safety of this zero-emissions energy source.”
Building off the strength of uranium’s price surge is the World Uranium Index. It’s up almost 50% for the year and the recent dip could offer traders an area of value if they’re looking to capitalize on further uranium price increases in the future.
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