Uranium update August 2024- Where are we in the cycle?
• The overall stock market has experienced a liquidity crisis due to the Japanese Yen Carry Trade, which has caused significant weakness. Recession fears and market uncertainty surrounding the US election, along with concerns that Federal Reserve rate cuts may come too late, combined with rising unemployment and escalating conflict in the Middle East, have further exacerbated the situation.
• This has severely impacted uranium stocks, causing substantial technical damage to the equities.
• Markets are expected to remain incredibly volatile until November, when there may be more clarity regarding the economy, the election, and interest rates.
• Despite this, markets are likely to continue climbing the “wall of worry” into the new year.
• Market sentiment is extremely fearful and bearish, which can be interpreted as a bullish signal.
• The markets appear to be on the cusp of a new liquidity cycle.
The Sprott Physical Uranium Trust is currently in a multi-year accumulation phase, characterised by a 7th wave correction forming into a falling wedge pattern. During the last bull run, Sprott experienced a similar 7th wave correction within the accumulation phase, which was merely a flush-out before a significant upward move. This correction was nothing more than an Expanding or Flat correction. CCJ and PDN experienced similar flat corrections in the last bull market, and this could be a similar pattern but on a larger scale.
• This has severely impacted uranium stocks, causing substantial technical damage to the equities.
• Markets are expected to remain incredibly volatile until November, when there may be more clarity regarding the economy, the election, and interest rates.
• Despite this, markets are likely to continue climbing the “wall of worry” into the new year.
• Market sentiment is extremely fearful and bearish, which can be interpreted as a bullish signal.
• The markets appear to be on the cusp of a new liquidity cycle.
The Sprott Physical Uranium Trust is currently in a multi-year accumulation phase, characterised by a 7th wave correction forming into a falling wedge pattern. During the last bull run, Sprott experienced a similar 7th wave correction within the accumulation phase, which was merely a flush-out before a significant upward move. This correction was nothing more than an Expanding or Flat correction. CCJ and PDN experienced similar flat corrections in the last bull market, and this could be a similar pattern but on a larger scale.
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