After The Close, 22 April 2008
Merv’s Daily Uranium Index
Market Data
Open: 284.18
Hugh: 289.43
Low: 274.68
Close: 280.36
Volume: 5170
Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.
We seem to be still dallying around in that “box” without any clear cut indication of which way it will finally go, and go one way or the other it must, eventually. I see that The Ux Consulting Co. LLC has posted its new uranium price and it is down again, another $3.00 to $65.00. That sure ain’t any good for stock prices. When we see the price of uranium dropping into new bear market lows one must be on guard for the price of stocks to also move to new lows, unless they know something that most haven’t yet heard about. Following in the footsteps of the uranium price is not unusual. It’s when they deviate that something is happening that is unusual. So far the stock prices have not been following in the footsteps of the metal. Let’s hope they see a uranium price turn around ahead, despite the recent decline.
If one is a speculator in uranium stocks one should beware of taking the performance of the various commercial Indices or ETFs to heart. A good portion of their composition is actually nuclear utilities, and they may be profiting from lower uranium price where the uranium mining companies may not be.
The Merv’s Daily Uranium Index closed once more on the down side, today by 3.68 points or 1.29%. There were 11 winners, 31 losers and 8 unchanged. Of the five largest stocks Cameco lost 1.0%, Denison lost 3.8%, First Uranium gained 4.6%, Paladin lost 3.5% and Uranium One gained 5.4%. The best gainer on the day was Quaterra with a gain of 23.7% while the worst loser was Uracan with a loss of 11.5%.
Well, there’s still nothing new to report from the intermediate term front other than the momentum indicator has just moved below its trigger line. The trigger line is still, however, pointing in an upward direction. None of this has any effect on the existing rating for the intermediate term. It remains BEARISH.
The short term has once more changed its rating. This is due to the Index moving slightly below its moving average line and the line itself has turned just a minor amount lower. The momentum indicator remains in its negative zone and is now once more below its trigger line with the trigger turning lower. The rating has reversed back to the BEARISH mode.
Despite all the ups and downs of the Index the moves are of a minor nature. They do, however, affect short term indicators and during a time such as the past several weeks of lateral trend we get many whip-saws. One of these days we will get to the last of the wipe-saws for this lateral trend. The only question is, WHEN?
Merv’s Daily Uranium Index
Market Data
Open: 284.18
Hugh: 289.43
Low: 274.68
Close: 280.36
Volume: 5170
Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.
We seem to be still dallying around in that “box” without any clear cut indication of which way it will finally go, and go one way or the other it must, eventually. I see that The Ux Consulting Co. LLC has posted its new uranium price and it is down again, another $3.00 to $65.00. That sure ain’t any good for stock prices. When we see the price of uranium dropping into new bear market lows one must be on guard for the price of stocks to also move to new lows, unless they know something that most haven’t yet heard about. Following in the footsteps of the uranium price is not unusual. It’s when they deviate that something is happening that is unusual. So far the stock prices have not been following in the footsteps of the metal. Let’s hope they see a uranium price turn around ahead, despite the recent decline.
If one is a speculator in uranium stocks one should beware of taking the performance of the various commercial Indices or ETFs to heart. A good portion of their composition is actually nuclear utilities, and they may be profiting from lower uranium price where the uranium mining companies may not be.
The Merv’s Daily Uranium Index closed once more on the down side, today by 3.68 points or 1.29%. There were 11 winners, 31 losers and 8 unchanged. Of the five largest stocks Cameco lost 1.0%, Denison lost 3.8%, First Uranium gained 4.6%, Paladin lost 3.5% and Uranium One gained 5.4%. The best gainer on the day was Quaterra with a gain of 23.7% while the worst loser was Uracan with a loss of 11.5%.
Well, there’s still nothing new to report from the intermediate term front other than the momentum indicator has just moved below its trigger line. The trigger line is still, however, pointing in an upward direction. None of this has any effect on the existing rating for the intermediate term. It remains BEARISH.
The short term has once more changed its rating. This is due to the Index moving slightly below its moving average line and the line itself has turned just a minor amount lower. The momentum indicator remains in its negative zone and is now once more below its trigger line with the trigger turning lower. The rating has reversed back to the BEARISH mode.
Despite all the ups and downs of the Index the moves are of a minor nature. They do, however, affect short term indicators and during a time such as the past several weeks of lateral trend we get many whip-saws. One of these days we will get to the last of the wipe-saws for this lateral trend. The only question is, WHEN?
1 comment:
As for comparison, in December 2006 when the U spot price was at current levels, a basket of producers and juniors were for the most part at least double current stock prices. I realize that valuations are different going up versus going down. But the point is that we have overshot the mean. Under normal circumstances we should be 20-40% higher.
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