Chefo Profile picture
14 Dec, 10 tweets, 8 min read
#uranium #SPUT $CCJ $SRUUF

1.) I see that a lot of new(er) investors in uranium don't have a clear picture of who the main players in this space are... and in times of massive downside vol, it usually is better to be aware than not...
#uranium #SPUT $CCJ $SRUUF

2.) Apart from the usual suspects that are easy to find like juniors, producers, etc. and #Sprott, there are some truly huge entities that play in this space -- certain banks and comm. traders that had a really nice thing going for some near 5-6 years
#uranium #SPUT $CCJ $SRUUF

3.) I've looked into the space for the last 4 years, mostly trading in and out--why? In commodities, the side with the most $ usually wins. Not the people with the best thesis, not the most knowledgeable. It doesn't mean you can't make good $ long
#uranium #SPUT $CCJ $SRUUF

3.) The most profitable trade in this sector (straight from a former trader at a huge Euro outfit looking for $), "just printing money" to paraphrase, was the carry trade or arbing the mid-term (2-3 years out price) and the spot price.
#uranium #SPUT $CCJ $SRUUF

4.) All the big boys were in some form synthetic short U, most of it hedged with off-takes, some of it naked. When I say big, I mean that-$CCJ and KAP are the 800-pound gorillas in mining, but they're lapdogs compared to the trading houses and banks
#uranium #SPUT $CCJ $SRUUF
5.) The large trading houses don't like losing $ and they can whip that thing any which way they want. What's more important is that the one thing they will absolutely, never allow to do is default on a delivery. #SPUT was a surprise in that regard
#uranium #SPUT $CCJ $SRUUF
6.) When retail and small inst. $ flooded into #SPUT, and U was ripping, the short interest curiously rose from 0.5M shares to ~6M shares and every time the premium to spot rose, it wasn't just #SPUT selling shares--large short sellers sold as well
#uranium #SPUT $CCJ $SRUUF
7.) It would not surprise me if it eventually came out that the large traders piled in short to nail #SPUT--not because of the price per say, they'll figure out how to make $ regardless, but because #SPUT was vacuuming too many U pounds lying around
#uranium #SPUT $CCJ $SRUUF
8.) Without free, mobile pounds lying around, their risk managers would not let them enter into further carry trades. They'll pivot; smaller players probably already have--I can bet they've been front-running #SPUT the whole way
#uranium #SPUT $CCJ $SRUUF
9.) But it's very likely that pounds meant for #SPUT are now hitting the market, with KAP and $CCJ probably being the bid. But, these two have dedicated trading arms and don't chase up, they look to buy cheap, so they're not price insensitive like #SPUT

• • •

Missing some Tweet in this thread? You can try to force a refresh

Keep Current with Chefo

Chefo Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!


Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!


0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy


3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us on Twitter!