Disconnect

Morning Guys,

Spot U is continuing higher and, after consolidating subsequent to its large jump (McArthur River) it now looks like it may be wanting to accelerate once again. MACD, below looks like it has just crossed over again too:



Yet, when I look at my North American U equity watchlist/ portfolio a disconnect emerges:



I have swallowed the positive U narrative and, based on the above, I am anticipating this disconnect to close at some point with solid gains in the miners as LT U contracts start to rise (and become public knowledge), and Spot U rises closer to the AIC of production.

As part of my investment framework for U, I am incorporating the writing of Ben Hunt and trying to watch how Game Theory, narratives and missionaries are affecting the behaviour of sector participants, including investors and speculators.

As part of this, missionaries are very important in carrying the narrative to the players and creating Common Knowledge - in this case what I am looking for is a positive narrative that uranium prices must go higher.

Whilst the WSJ, FT and Bloomie are the most important missionaries in the media, there are others. One is John Quakes, a prolific tweeter and agregator of U related information on Twitter. I have been tracking his followers for a few months now:



The takeaway is that his audience is growing and the narrative is reaching a wider audience. However, the graph above, although for a very short period of time, suggests that the narrative is not [yet] going parabolic. Although the signs are very good for this sector, patience is required.

Have a great weekend.

Cheers
John