After The Close, 06 Oct 2008
Merv’s Daily Uranium Index
Market Data
Open: 129.82
Hugh: 134.09
Low: 109.90
Close: 121.11
Volume: 8672
Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.
What a rotten start for a week. Markets everywhere were deep in the dumpster, except gold bullion. It’s interesting that gold was way up on the day while gold stocks were down. Uranium stocks were really hit hard again. Maybe they will reach that 50 projection on the Daily Index. If it wasn’t for Thursday’s action we would have a breakaway “gap” in today’s action but the low on Thursday was lower than the high today so there is no gap. Other than that I can’t quite figure what today’s action really means. It was bearish but is it signifying a final weeding out of weak holders and preparing for a reversal or is it just more of the same with more to come? That’s why I prefer to follow rather than try to predict the future.
The Merv’s Daily Uranium Index closed lower by 20.11 points or 14.25%. There were only 2 winners on the day. There were 46 losers and 2 going nowhere. I guess one can say those going nowhere were really winners compared to the rest of the components. Of the 50 stocks there were 37 double digit losers. Most of the top five were in this category. Cameco lost 11.2%, Denison lost 14.3%, Paladin lost 19.0%, Uranium One lost 19.2% and USEC lost 8.7%. The biggest winner was Trigon Uranium with a gain of 19.1% while the biggest loser of all those double digit losers was Western Prospector with a loss of 37.7%.
As you can guess, with the action today nothing has changed in the short and intermediate term indicators. The only significant item remains the fact that the momentum indicators, short and intermediate term, are still above their lows of a week or two back. The other interesting item is the Stochastic Oscillator. It has been moving sideways over the past few days and has not been plunging with the market. I mentioned before that the SO is highly affected by where the Index closes versus the daily range. Closing in the middle of the trading range affects the SO very little, and that is what we see today. Although the Index closed lower by a significant amount it closed just about at its midway position versus the trading range. The SO therefore moved only sideways today. The short and intermediate term ratings remain BEARISH while the direction of least resistance remains downward.
Merv’s Daily Uranium Index
Market Data
Open: 129.82
Hugh: 134.09
Low: 109.90
Close: 121.11
Volume: 8672
Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.
What a rotten start for a week. Markets everywhere were deep in the dumpster, except gold bullion. It’s interesting that gold was way up on the day while gold stocks were down. Uranium stocks were really hit hard again. Maybe they will reach that 50 projection on the Daily Index. If it wasn’t for Thursday’s action we would have a breakaway “gap” in today’s action but the low on Thursday was lower than the high today so there is no gap. Other than that I can’t quite figure what today’s action really means. It was bearish but is it signifying a final weeding out of weak holders and preparing for a reversal or is it just more of the same with more to come? That’s why I prefer to follow rather than try to predict the future.
The Merv’s Daily Uranium Index closed lower by 20.11 points or 14.25%. There were only 2 winners on the day. There were 46 losers and 2 going nowhere. I guess one can say those going nowhere were really winners compared to the rest of the components. Of the 50 stocks there were 37 double digit losers. Most of the top five were in this category. Cameco lost 11.2%, Denison lost 14.3%, Paladin lost 19.0%, Uranium One lost 19.2% and USEC lost 8.7%. The biggest winner was Trigon Uranium with a gain of 19.1% while the biggest loser of all those double digit losers was Western Prospector with a loss of 37.7%.
As you can guess, with the action today nothing has changed in the short and intermediate term indicators. The only significant item remains the fact that the momentum indicators, short and intermediate term, are still above their lows of a week or two back. The other interesting item is the Stochastic Oscillator. It has been moving sideways over the past few days and has not been plunging with the market. I mentioned before that the SO is highly affected by where the Index closes versus the daily range. Closing in the middle of the trading range affects the SO very little, and that is what we see today. Although the Index closed lower by a significant amount it closed just about at its midway position versus the trading range. The SO therefore moved only sideways today. The short and intermediate term ratings remain BEARISH while the direction of least resistance remains downward.
2 comments:
Merv,
Technically speaking, what is the chance of the penny stocks (once $ stocks) recovering?
Thanks,
There is always a chance of penny stocks recovering. However, you would normally need a real good bull market for these stocks, in general, to recover. When speculators become very bullish they go looking for the pennies to sadisfy their gambling instincts. Besides, some of the pennies will become huge successes during the next bull and one or two will even become "quality" stocks in the future. The problem is that there are SO MANY pennies during a bear market one rarely knows which is going to be the next Cameco.
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