Uranium has had a great run in the last two years. If you have been following the portfolio, you have seen it become a larger and larger percent of the holdings. I sold 1/3 of the position this past month because the move was a bit too extended. I thought this would be a good a chance to offer my two cents on uranium and explain how I trade around long-term positions in the portfolio.
I started building a position in February 2021 and it has been a great climb since. I use the Sprott Physical Uranium Trust to participate in moves in uranium. So far we are up around 140% on the position.
I use macro ideas to get into positions but then I use some technical analysis to tell me if I should add or trim. I sold mid month because the move was very quick and the price was reaching the top of the channel I was watching.
When positions become too stretched, I like to take some out, usually 30%. My intention is never to time anything perfectly but adding during weakness and trimming into strength has served me well if the reasons I started the positions are still valid.
Uranium continues to be one of my highest conviction positions going forward. I am expecting a 15-20% correction and then another big move up over the next 12-18 months. I have laid out my thesis multiple times and it seems to only be improving. Click here to read what I previously said about uranium.
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