After The Close, 02 Oct 2008
Merv’s Daily Uranium Index
Market Data
Open: 151.97
Hugh: 154.19
Low: 132.97
Close: 138.50
Volume: 6838
Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.
Here we go again, in the dumper. Uranium dropped to a new bear market low this week, to $53.00, a $5.00 drop from last week. This can’t be good for stocks and we see the effects, OR is it just a decline in sympathy with the rest of the market. That market seems to be getting quite oversold and ripe for a rebound. The same may be said for uranium and uranium stocks.
The chart today takes in the same time period as the chart yesterday. It’s a good comparison between bar and P&F chart methods. On yesterday’s P&F chart we can plot a new zero below the last one to account for today’s activity. That gets us right to the lower support trend line from where we have had several rallies in the past. The potential positive divergence in the momentum indicator continues and still might be valid for another day or so. Any longer than that without a rally would probably see the indicator drop into new lows confirming the Index. Time will tell but we are getting closer to a bounce or rally of some sort but let’s not get too excited until any such rally actually reverses the trend rating.
The Merv’s Daily Uranium Index closed lower by 16.12 points or 10.42%. There were only 3 winners and 45 losers with 2 going nowhere. Of the top five by market value, Cameco lost 7.2% as the only one of the five to limit its losses to a single digit. Denison lost 12.7%, Paladin lost 13.7%, Uranium One lost 20.0% and USEC lost 11.9%. The best performer of those 3 winners was Globex Mining with a gain of 9.5% while the worst performer was Western Prospector with a loss of 75.4%. I guess those that live by the merger die by the non-merger. The next worst stock was Forsys Metals with a loss of 21.2%.
All of the indicators for the short and intermediate term remain negative so no need to go into detail today. The intermediate and short term ratings remain BEARISH.
The direction of least resistance has convincingly turned into the down side with the move into new lows by the Index and a move by the Stochastic Oscillator back into its oversold zone, below its negative sloping trigger line. Although the direction is towards the down side things are so negative that a reversal has to be somewhere ahead, and not to long ahead.
Merv’s Daily Uranium Index
Market Data
Open: 151.97
Hugh: 154.19
Low: 132.97
Close: 138.50
Volume: 6838
Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.
Here we go again, in the dumper. Uranium dropped to a new bear market low this week, to $53.00, a $5.00 drop from last week. This can’t be good for stocks and we see the effects, OR is it just a decline in sympathy with the rest of the market. That market seems to be getting quite oversold and ripe for a rebound. The same may be said for uranium and uranium stocks.
The chart today takes in the same time period as the chart yesterday. It’s a good comparison between bar and P&F chart methods. On yesterday’s P&F chart we can plot a new zero below the last one to account for today’s activity. That gets us right to the lower support trend line from where we have had several rallies in the past. The potential positive divergence in the momentum indicator continues and still might be valid for another day or so. Any longer than that without a rally would probably see the indicator drop into new lows confirming the Index. Time will tell but we are getting closer to a bounce or rally of some sort but let’s not get too excited until any such rally actually reverses the trend rating.
The Merv’s Daily Uranium Index closed lower by 16.12 points or 10.42%. There were only 3 winners and 45 losers with 2 going nowhere. Of the top five by market value, Cameco lost 7.2% as the only one of the five to limit its losses to a single digit. Denison lost 12.7%, Paladin lost 13.7%, Uranium One lost 20.0% and USEC lost 11.9%. The best performer of those 3 winners was Globex Mining with a gain of 9.5% while the worst performer was Western Prospector with a loss of 75.4%. I guess those that live by the merger die by the non-merger. The next worst stock was Forsys Metals with a loss of 21.2%.
All of the indicators for the short and intermediate term remain negative so no need to go into detail today. The intermediate and short term ratings remain BEARISH.
The direction of least resistance has convincingly turned into the down side with the move into new lows by the Index and a move by the Stochastic Oscillator back into its oversold zone, below its negative sloping trigger line. Although the direction is towards the down side things are so negative that a reversal has to be somewhere ahead, and not to long ahead.
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