After The Close, 01 Oct 2008
Merv’s Daily Uranium Index
Market Data
Open: 158.69
Hugh: 162.82
Low: 148.98
Close: 154.62
Volume: 6088
Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.
Another day, another ho-hum day. The action was basically sideways although the final close was on slightly on the down side. Sideways is, however, better than plunging ever lower.
The Merv’s Daily Uranium Index closed lower by 2.71 points or 1.72%. There were 21 winners, 28 losers and one going nowhere. Of the five largest stocks by market value, Cameco lost 1.4%, Denison lost 4.5%, Paladin lost 7.1%, Uranium One lost 6.5% and USEC lost 7.0%. The best daily winner was Uranerz Energy with a gain of 11.2% while the worst loser was Khan Resources with a loss of 18.3%.
Today I show a P&F chart that is basically an intermediate term chart. With these P&F charts it’s often difficult to classify them as to effective time period chart. I have another P&F chart which is slightly less aggressive and may qualify as a long term chart. From both of these charts I have a downside projection to the 130 level. On this chart the projection can be calculated by a horizontal count of the last consolidation period. On the long term chart the calculation was from the early days of the bear market. From the 500 level it was so low that at the time I thought it could not be a valid projection, and here we are. So, the next point to watch on the down side is 130. On this chart one can perform a vertical count that would take us to the 50 level. Again, that looks too far down and too far away to be realistic, but I thought that before in this bear market. As I mentioned in the past, with these P&F charts the initial projections after a reversal of trend are the most accurate, some have determined that their accuracy could be 80% or higher. However, as the trend progresses any new continuation projection will at some point become false and not met.
On the intermediate term the Index continues to trade below its negative sloping moving average line and the momentum indicator continues to move inside its negative zone below its negative sloping trigger line. The volume indicator continues lower below its negative trigger line. The intermediate term rating can only be BEARISH.
The short term is no better. The Index remains below its negative moving average line and the momentum remains below its negative trigger line in the negative zone. The momentum indicator continues to show a potential positive divergence. However, the final rating remains BEARISH.
The Index continues below its very short term moving average line. The Stochastic Oscillator continues in its negative zone. However, the SO has just poked its head above its oversold line to suggest a possible advance is in order. However, I will stay with the lateral trend as the direction of least resistance for another day.
Merv’s Daily Uranium Index
Market Data
Open: 158.69
Hugh: 162.82
Low: 148.98
Close: 154.62
Volume: 6088
Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.
Another day, another ho-hum day. The action was basically sideways although the final close was on slightly on the down side. Sideways is, however, better than plunging ever lower.
The Merv’s Daily Uranium Index closed lower by 2.71 points or 1.72%. There were 21 winners, 28 losers and one going nowhere. Of the five largest stocks by market value, Cameco lost 1.4%, Denison lost 4.5%, Paladin lost 7.1%, Uranium One lost 6.5% and USEC lost 7.0%. The best daily winner was Uranerz Energy with a gain of 11.2% while the worst loser was Khan Resources with a loss of 18.3%.
Today I show a P&F chart that is basically an intermediate term chart. With these P&F charts it’s often difficult to classify them as to effective time period chart. I have another P&F chart which is slightly less aggressive and may qualify as a long term chart. From both of these charts I have a downside projection to the 130 level. On this chart the projection can be calculated by a horizontal count of the last consolidation period. On the long term chart the calculation was from the early days of the bear market. From the 500 level it was so low that at the time I thought it could not be a valid projection, and here we are. So, the next point to watch on the down side is 130. On this chart one can perform a vertical count that would take us to the 50 level. Again, that looks too far down and too far away to be realistic, but I thought that before in this bear market. As I mentioned in the past, with these P&F charts the initial projections after a reversal of trend are the most accurate, some have determined that their accuracy could be 80% or higher. However, as the trend progresses any new continuation projection will at some point become false and not met.
On the intermediate term the Index continues to trade below its negative sloping moving average line and the momentum indicator continues to move inside its negative zone below its negative sloping trigger line. The volume indicator continues lower below its negative trigger line. The intermediate term rating can only be BEARISH.
The short term is no better. The Index remains below its negative moving average line and the momentum remains below its negative trigger line in the negative zone. The momentum indicator continues to show a potential positive divergence. However, the final rating remains BEARISH.
The Index continues below its very short term moving average line. The Stochastic Oscillator continues in its negative zone. However, the SO has just poked its head above its oversold line to suggest a possible advance is in order. However, I will stay with the lateral trend as the direction of least resistance for another day.
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