"The Global X Uranium ETF, which holds over 20 uranium stocks, has surged more than 25 percent over the last month as positive guidance from some of the industry's largest players has renewed investor optimism in the sector. In addition, recent remarks from Chinese Prime Minister, Wen Jaibao have highlighted the country's intentions to focus on nuclear energy and limit its use of coal......................
China's primary economic planning agency, The National Development and Reform Commission, estimates that China can expand its current nuclear capacity of 10.8 gigawatts to between 70 and 80 gigawatts by 2020. According to the U.S. Energy Information's International Energy Outlook for 2011, China intends to add 106 GW of nuclear capacity by 2035. China plans to have 40 reactors by 2020 and, by 2030, enough additional reactors to generate more power than all 104 reactors in the US. In early 2011, following the tragic meltdown of the Fukushima Energy Plant, the Chinese State Council temporarily halted the construction of 27 nuclear power plants declaring the need for new safety regulations. During the delay, China re-assessed the safety of its planned and approved Generation-II reactor projects. "My watch list: URS, URZ, URRE, USU, CCJ, DNN
My notes: I am not a chartist but these stocks' charts look stretched in the very short term. The risk/reward of entering the play now is not favorable. However, this is a policy change that is important enough to lift a relatively small sector, thus worth noting and finding opportunities for building some small positions.
Disclosure: I do not have any position of the above stocks in my personal account.