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Divergence Emerging On Uranium Versus Uranium Equities

Published 05/18/2014, 09:32 AM
CCJ
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GC
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GDX
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GDXJ
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URA
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The chart below shows the price of Uranium (black line) vs an ETF of Uranium miners (Global X Uranium (NYSE:URA)) (green line) as well as Cameco (NYSE:CCJ), the largest uranium miner in the world (purple line). ]

Uranium vs. ETF OF Uranium Miners

We see a bit of a divergence here, in that uranium is reaching new lows while miners are not.

I'm not sure what to make of this, if anything at all. It does remind me a bit of how gold miners have started to outperform Gold since the price of gold reached a double bottom at the end of 2013. The chart below shows the ETF's Market Vectors Gold Miners (ARCA:GDX) and Market Vectors Junior Gold Miners (ARCA:GDXJ) vs the price of gold year to date.

Gold Chart

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