After The Close, 06 March 2008
Just goes to show ya, wishen for something to happen ain’t gonna make it so. However, so far that scenario about hugging the trend line down a ways and then continuing its rally could still take place. Keep wishen.
The Merv’s Daily Uranium Index closed lower again, this time by 0.106 points or 3.01%. Ouch! There were only 14 winners and 33 losers with 3 unchanged. One of the largest 5 stocks actually gained on the day. Cameco lost 2.2%, Denison lost 3.1%, First Uranium was the lone gainer with a gain of 0.1% (WOW), Paladin lost 3.0% and Uranium One did not disappoint with a loss of 7.3%. The best gainer on the day was Pitchstone Exploration with a gain of 14.3% while the worst performer was Mega Uranium with a loss of 11.7%.
The intermediate term is almost becoming a recording. The Index continues below a negative moving average line and the momentum indicator continues in its negative zone below its negative sloping trigger line. The volume indicator is heading lower but still above its intermediate term trigger line. This is still an after effect of the unusual upside activity as mentioned here a few weeks ago. With the indicators as they are I can only continue with my BEARISH rating for the intermediate term.
On the short term, always the more volatile term, things are continuing to progress more and more towards the down side. As mentioned above, the Index is still in that “hugging the trend line” period. Anything can still happen from here but being a technician whatever I may think “should” happen, I must go with what IS happening until verified to the contrary. So, the Index remains below a negative sloping short term moving average line and the momentum indicator continues to move lower inside its negative zone, below its negative sloping trigger line. The Stochastic Oscillator is in a steep dive well inside its negative zone, in fact it is very close to entering its oversold zone. Maybe tomorrow will get it there. I was very close to going bearish yesterday but for some not altogether negative indicators. Today, I must go full bore and back into the BEARISH rating for the short term.
In my weekly gold commentaries I also look at the IMMEDIATE term trend. This is my view as to the immediate direction of the Index. From that perspective the immediate term indicators went bearish a couple of days ago. Maybe I will start including that perspective here, at least on the occasional basis. Of course, the immediate term being the most volatile is also most likely to present the most whip-saw events but that’s the way it goes. Nothing is perfect.
My view at this time is to continue sitting back, relaxing and let others worry about their stocks. You should be having a cool beer, or if you are not a redneck, a martini, and enjoying whatever else life has to offer.
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