Merv's Daily Commentary, 06 Aug 2008

After The Close, 06 Aug 2008

Merv’s Daily Uranium Index
Market Data

Open: 224.57
Hugh: 231.71
Low: 219.59
Close: 225.32
Volume: 3385

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

Well at least it wasn’t a day like yesterday. Although the Dailky Index closed a little higher the average performance of the 50 component stocks was slightly negative. Make that a split day.

The Merv’s Daily Uranium Index closed higher by 2.6 points or 1.17%. There were 22 winner, 23 losers (almost an even split) and 5 stocks going nowhere. Of the five largest stocks Cameco gained 0.5%, Denison gained 0.2%, First Uranium gained 4.32%, Paladin lost 0.7% and Uranium Participation gained 2.3%. It’s in the best and worst that we see the real mover. The best performer on the day was Hathor Exploration with a gain of 15.9% but Terra Ventures was right behind with a 15.8% gain. The worst performer on the day was JNR Resources with a loss of 17.9%.

Looking at the intermediate term chart and indicators nothing much has changed in the past few days. The Index remains below its negative sloping moving average line. The momentum indicator remains in its negative zone below its negative trigger line and the volume indicator remains below its negative trigger line. BEARISH is the only rating possible at this time.

On the short term the same is true. The Index is below its short term negative moving average line. The momentum indicator remains in its oversold line, in the negative zone, and below its negative sloping trigger line. The daily volume action is very low suggesting a lack of speculative interest. They must be all technicians who have long ago gotten out and are just waiting for the word to get back in. Here, BEARISH is still the rating.

With today’s action the Index decline may have been halted but not yet turned around. Although everything is still negative from the very short term point of view I think that a neutral stand is justified until the Index either closed below yesterday’s low or above its very short term moving average line.

Check back about 8:30 PM and I should have the Daily Table posted.