After The Close, 04 March 2008
That nibble, nibble just turned into a big bite. It looks like the rally has come to an end with the direction of least resistance being once more to the down side. The Merv’s Daily Uranium Index closed lower today by 0.084 points or 2.36%. There were 8 winners and a whopping 36 losers. I was hoping against hope we would be getting these figures but in the reverse order. 6 stocks closed unchanged on the day. As for the majors, they all closed lower. Cameco lost 0.9%, Denison lost 4.1%, First Uranium lost 1.0%, Paladin lost 0.9% and Uranium One lost 2.6%. The best performer of the few that closed on the up side was Bayswater Uranium with a gain of 5.2%. The worst performer was Uracan Resources with a loss of 15.7%.
As has been the case for some time now, although the lines on the chart may change the final outcome stays the same. The Index remains below its negative sloping moving average line. The momentum indicator remains in its negative zone, below a now negative sloping trigger line. The action is once more below that third FAN trend line we have been watching for a possible upside breach. The Index did close above the line for one day but most of that day’s action was below the line. All in all, the intermediate term rating remains unchanged as BEARISH.
On the short term, boy things can change fast when we have a bad day. The Index has finally closed below its short term moving average line although the line is still very slightly pointing in an upward direction. The short term momentum has just broken below its neutral line into the negative zone and below its negative sloping trigger line. The action has now broken below the support lower trend line of that up trending channel. After two weeks tracing a somewhat lateral path the Stochastic Oscillator took a plunge yesterday and a further one today finishing well into its negative zone. From a short term bullish rating yesterday the short term has now turning into a BEARISH rating.
With the indicators as negative as they are it is a very dangerous time to be even thinking of gambling on stocks, unless one is gambling on the down side. In my view speculators should relax and stay out until things turn around. The worst thing a person can do is go against the trend of the overall market (or in this case, the Index). During bear periods the market takes the good with the bad.
That nibble, nibble just turned into a big bite. It looks like the rally has come to an end with the direction of least resistance being once more to the down side. The Merv’s Daily Uranium Index closed lower today by 0.084 points or 2.36%. There were 8 winners and a whopping 36 losers. I was hoping against hope we would be getting these figures but in the reverse order. 6 stocks closed unchanged on the day. As for the majors, they all closed lower. Cameco lost 0.9%, Denison lost 4.1%, First Uranium lost 1.0%, Paladin lost 0.9% and Uranium One lost 2.6%. The best performer of the few that closed on the up side was Bayswater Uranium with a gain of 5.2%. The worst performer was Uracan Resources with a loss of 15.7%.
As has been the case for some time now, although the lines on the chart may change the final outcome stays the same. The Index remains below its negative sloping moving average line. The momentum indicator remains in its negative zone, below a now negative sloping trigger line. The action is once more below that third FAN trend line we have been watching for a possible upside breach. The Index did close above the line for one day but most of that day’s action was below the line. All in all, the intermediate term rating remains unchanged as BEARISH.
On the short term, boy things can change fast when we have a bad day. The Index has finally closed below its short term moving average line although the line is still very slightly pointing in an upward direction. The short term momentum has just broken below its neutral line into the negative zone and below its negative sloping trigger line. The action has now broken below the support lower trend line of that up trending channel. After two weeks tracing a somewhat lateral path the Stochastic Oscillator took a plunge yesterday and a further one today finishing well into its negative zone. From a short term bullish rating yesterday the short term has now turning into a BEARISH rating.
With the indicators as negative as they are it is a very dangerous time to be even thinking of gambling on stocks, unless one is gambling on the down side. In my view speculators should relax and stay out until things turn around. The worst thing a person can do is go against the trend of the overall market (or in this case, the Index). During bear periods the market takes the good with the bad.
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