After The Close, 30 April 2008
Merv’s Daily Uranium Index
Market Data
Open: 258.57
Hugh: 269.88
Low: 252.65
Close: 263.48
Volume: 5338
Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.
The Index closed on the up side today but not with any enthusiasm. Although it closed up versus yesterday’s close the daily low was still lower than yesterday (a new bear market low) and the daily high was lower than yesterday’s daily high. So, the day’s action did not solve anything although it might be setting itself up for more upside. However, we will have to wait for that. In addition, the daily volume was less than yesterday. For an upside move volume that is lower than for a downside move is something to be concerned about. Since the normal investor or speculator activity is to buy and hold, not to sell, the usual daily volume activity should show more volume on the up side than the down side. A change to this normal kind of activity is important. We’ll have to wait for a little more activity as one day does not mean anything, unless it breaks a trend or reverses indicators.
The Merv’s Daily Uranium Index closed up 4.24 points or 1.64%. There were 18 winners, 25 losers and 7 unchanged. Another reason not to get too excited about an up Index day is when far more individual stocks move in the opposite direction. That does not show a great deal of upside conviction, only selective moves. For the top five stocks Cameco lost 0.3%, Denison gained 3.2%, First Uranium lost 0.9%, Paladin gained 4.4% and Uranium One lost 1.1%. The best performer was Quaterra with a gain of 20.0% while USEC Inc. was the worst performer with a loss of 8.8%.
The intermediate term continues as it has for many weeks. The Index is below a negative moving average line and the momentum is in its negative zone below its negative trigger line. The intermediate term rating continues BEARISH.
As for the short term the Index remains below its negative sloping moving average line and the momentum indicator remains in its negative zone below its negative trigger line. The momentum indicator has turned upward but is just below its trigger line and still considered as moving in a negative direction. The short term rating is still BEARISH but could start turning around should we have another day or two of upside action.
The immediate term direction is determined by the very short term moving average and the aggressive Stochastic Oscillator. Short term trend lines also come into play when we have good ones. For now the Index is still below its very short term moving average line and the line slope remains negative. We are, however, seeing the first potential indications of an immediate term change in direction with the Stochastic Oscillator having turned up and moved above its trigger line. The trigger has also reversed to the up side. Although the immediate term rating remains BEARISH it is in the process of firming up and could be close to a change in direction.
Merv’s Daily Uranium Index
Market Data
Open: 258.57
Hugh: 269.88
Low: 252.65
Close: 263.48
Volume: 5338
Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.
The Index closed on the up side today but not with any enthusiasm. Although it closed up versus yesterday’s close the daily low was still lower than yesterday (a new bear market low) and the daily high was lower than yesterday’s daily high. So, the day’s action did not solve anything although it might be setting itself up for more upside. However, we will have to wait for that. In addition, the daily volume was less than yesterday. For an upside move volume that is lower than for a downside move is something to be concerned about. Since the normal investor or speculator activity is to buy and hold, not to sell, the usual daily volume activity should show more volume on the up side than the down side. A change to this normal kind of activity is important. We’ll have to wait for a little more activity as one day does not mean anything, unless it breaks a trend or reverses indicators.
The Merv’s Daily Uranium Index closed up 4.24 points or 1.64%. There were 18 winners, 25 losers and 7 unchanged. Another reason not to get too excited about an up Index day is when far more individual stocks move in the opposite direction. That does not show a great deal of upside conviction, only selective moves. For the top five stocks Cameco lost 0.3%, Denison gained 3.2%, First Uranium lost 0.9%, Paladin gained 4.4% and Uranium One lost 1.1%. The best performer was Quaterra with a gain of 20.0% while USEC Inc. was the worst performer with a loss of 8.8%.
The intermediate term continues as it has for many weeks. The Index is below a negative moving average line and the momentum is in its negative zone below its negative trigger line. The intermediate term rating continues BEARISH.
As for the short term the Index remains below its negative sloping moving average line and the momentum indicator remains in its negative zone below its negative trigger line. The momentum indicator has turned upward but is just below its trigger line and still considered as moving in a negative direction. The short term rating is still BEARISH but could start turning around should we have another day or two of upside action.
The immediate term direction is determined by the very short term moving average and the aggressive Stochastic Oscillator. Short term trend lines also come into play when we have good ones. For now the Index is still below its very short term moving average line and the line slope remains negative. We are, however, seeing the first potential indications of an immediate term change in direction with the Stochastic Oscillator having turned up and moved above its trigger line. The trigger has also reversed to the up side. Although the immediate term rating remains BEARISH it is in the process of firming up and could be close to a change in direction.
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