Merv's Daily Commentary, 12 June 2008

After The Close, 12 May 2008

Merv’s Daily Uranium Index
Market Data

Open: 280.90
Hugh: 287.88
Low: 274.37
Close: 280.82
Volume: 2852

Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.

For those who may be keeping track of the Index, I should have the missing data for you later tonight or tomorrow morning.

I’m still in catch-up mode after the week or so away from the commentary. The Week-end commentary will summarize what has been going on for the past several days.

For today, the uranium stocks had a sleeper and finished very little changed from yesterday. The Merv’s Daily Uranium Index closed higher by only 0.83 points or 0.30%. There was only one more loser than winners with 22 winners, 23 losers and 5 unchanged. As for the five largest stocks by market value, Cameco lost 1.0%, Denison lost 0.5%, First Uranium lost 0.6%, Paladin, the only winner, gained 1.6% and Uranium One lost 2.5%. The best performer on the day was Hathor Exploration with a gain of 10.3% while the worst performer was Uranium Resources with an identical 10.3% but on the loser’s side.

On the intermediate term what we have is an Index that is below its intermediate term moving average line with the line slope turning once more to the down side. The momentum indicator just can’t seem to get into that positive zone. It continues in its negative zone and moving lower, below its trigger line. Volume action has been pretty low these past few weeks which gives us a still positive volume indicator. It is just above its positive trigger line but basically moving sideways. The only rating I can give the intermediate term is a BEARISH rating.

On the short term things are not too much brighter. The Index seems to have stalled in its downward path just around the 275 level. This is a level where a lot of activity had taken place in the past. The past couple of days do seem like days just before a reversal of direction, BUT let’s not jump the gun, wait for it. In the mean time the Index continues to trade below its short term moving average line and just below its very short term average. Both average lines are sloping downwards. As for the momentum indicator, it has dropped into its negative zone below its negative sloping trigger line. It has, however, leveled off and seems to want to reverse back to the up side. Time will tell. The more aggressive Stochastic Oscillator is sitting just on top of its oversold line but has not gone below. It continues to move below its negative trigger line. As with the momentum indicator, the Stochastic Oscillator seems to have leveled off so tomorrow may be interesting. On the short term a BEARISH rating is still the most appropriate. As for the immediate term direction, it is still negative with signs of wanting to reverse.

With uranium price still in a downward trend this is still not the time for investors to be getting in. It is also still very risky for the speculator.