Merv's Daily Commentary, 08 Nov. 2007

After the Close, 08 Nov 2007

Another down day and although the Index drop was not that severe there sure were a lot of stocks closing lower. The Merv’s Daily Uranium Index closed down 0.085 points or 1.73%. There were only 7 stocks advancing while 42 stocks declined. One stock closed unchanged. Of the five largest stocks by market value, Cameco closed lower by 1.4%, Denison closed lower by 2.4%, Paladin closed lower by 1.1%, UEX closed lower by 3.3% and Uranium One was the winner in the bunch with a gain of 1.2%. The best performer on the day was Altius with a gain of 1.4% (WOW! That was the best gainer?). The worst performer was Northern Continental with a loss of 9.7%.

We can quickly get rid of the intermediate term analysis. The uranium stocks are still in a bearish trend, intermediate term wise. The Index is above its positive moving average line and the momentum is still above its neutral line (but has just broken below its lower channel support line). Volume is still holding its own, not too positive but not negative either. And finally, the Index remains inside its up trending channel. We are not yet in a danger situation as far as the intermediate term is concerned so I will keep the rating at BULLISH for another day. Although bullish, since the short term is not all that great one would not make any new commitments until the short term perked up again.

On the short term we do have some problems. The Index is below its short term moving average line and the line has now turned downwards. The momentum indicator has dropped below its mid-Sept low and is very close to moving into its negative zone. The aggressive Stochastic Oscillator has also dropped below its mid-Sept low and is now well below its overbought line. With all that I am lowering my short term rating to BEARISH.