After The Close, 01 April 2008We’re back to a nibble, nibble, nibble market with a continual decline but just a little each day. Today makes it 4 days of decline in a row. Are we going to make it another five? Although we had another down day with a new bear market low we still have not moved into new intra-day lows. It looks like we’re back into a box, the break-out from which will tell us the next basic direction for the Index.
The Merv’s Daily Uranium Index closed lower by another 0.039 points or 1.43%. There were 12 winners, 36 losers and 2 going nowhere. Of the five largest stocks Cameco gained 0.5%, Denison gained 1.9%, First Uranium lost 6.6%, Paladin lost 2.4% and Uranium One lost 6.5%. There were only two double digit movers today, one on the up side and one on the down side, both with equal percentages. The best performer was USEC Inc. with a gain of 10.5% while the worst performer was Xemplar Energy with a loss of 10.5%.
There is nothing new in the intermediate term chart or indicators so I’ll just cut to the chase and say that the rating remains BEARISH.
On the short term there is almost always something happening. Nothing has changed in the indicators that would change the recent short term rating but there are some things happening to the indicators that requires watching. The most important activity is the momentum indicator and its continual potential to give us a positive divergence. Although the Index is making new lows the momentum indicator continues to hold above previous levels. The low level of the daily volume activity is also encouraging. The momentum indicator is in its oversold zone from which rallies are prone to start. Despite these three encouraging signs the Index remains below its negative moving average line and the momentum remains in its negative zone below its negative trigger line. The volume indicator is also below its negative trigger line. So, the short term rating remains BEARISH.
2 comments:
What is really interesting Merv, is how the index and stocks can manage losses on a day where the Dow surges 390 points.
U stocks don't seem to follow oil, gold, or the general markets up, only down.
I try not to equate a move in any sector to moves in other sectors in the market, even the whole market. They all have their own axes to grind and move for different reasons. Even the highly touted opposite relationship between gold and the US $ is frougth with surprises at the worst of times.
To expand on the above, most stocks move in the same direction when they are in a well established bull or bear market, but for a one or two day move, one should not expect the same relationship.
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