After the Close, 15 Nov 2007Well it looks like the down side is still the path of least resistance. The Merv’s Daily Uranium Index closed lower by 0.101 points or 2.18%. There were 12 stocks that closed on the up side, 33 stocks that closed on the down side and 5 closing on no side at all. Of the five largest stocks by market value, Cameco closed lower by 2.5%, Denison closed lower by 3.1%, Paladin closed lower by 2.6%, UEX closed lower by 6.0% and Uranium One closed higher by 3.3%. The best daily performer was NWT Uranium with a gain of 11.5% while the worst daily performer was Energy Fuels with a loss of 7.5%.
I guess one should not ignore the message broadcast by the candlestick chart. The weakness in the past two days of upside closes was mentioned yesterday and here we are with the down side close at a new reaction low. The daily action indicators continue negative with the Index below its negative moving average line and the momentum below its neutral line. Of interest is the more aggressive Stochastic Oscillator which has entered its oversold zone. Now to see how long it stays there and when it moves back above the oversold line for an indication of a new rally. For now the short term rating for the Index and uranium stocks continues BEARISH.
On the intermediate term things just got more bearish. The Index has closed just below its intermediate term moving average line although the line is still pointing gently higher. Another day and the moving average line may turn downward.
The momentum indicator has dropped back below its neutral line and is pointing lower. Another rating downgrade takes us to a full BEARISH rating for the intermediate term.
I would be inclined to continue staying away from this market until the ratings improve. There is always the few stocks that go counter to the crowd buy you are taking a huge extra risk in thinking your stock is one of them. A bear trend eventually takes the good down with the bad.
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