After The Close, 14 Oct 2008
Merv’s Daily Uranium Index
Market Data
Open: 126.59
Hugh: 131.82
Low: 108.88
Close: 117.14
Volume: 8058
Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.
Yesterday was a holiday in Canada and the Stock Exchange was closed, so no commentary or Index. Most of the stocks are traded on the Canadian Exchanges.
Today we saw the effects of the big rise in the markets world wide on Monday. The Canadian stocks opened way up there but then very soon started their descend and ended the day near their low. The candlestick chart shows this lower close versus the open by a solid body in the candle. An open body as we see on so many up days indicates an upside close versus the open, the normal up day. So, was this REALLY an up day or was it a down day taking into account the fact that we had no Monday trading?
The Merv's Daily Uranium Index closed up on the day by 14.43 points or 14.04%. There were 39 winners, 9 losers and 2 going nowhere. Of the five largest stocks, Cameco gained 16.3%, Denison gained 21.0%, Paladin gained 17.4%, Uranium One lost 2.2% and USEC went nowhere with a zero gain or loss. The best gainer on the day was Forsys Metals with a 75.3% gain although Xemplar Energy was right behind with a 73.1% gain. The biggest loser was Bayswater Uranium with a loss of 12.0%.
Well, we are having some movement in the indicators but as yet they are having little effect. On the intermediate term the Index remains below its negative moving average line and the momentum indicator remains in its negative zone. The indicator has moved higher and has crossed its trigger line to the up side. The trigger, however, has not yet turned to the up side. In addition, the indicator has moved above its oversold line for an indication of a possible rally in progress. The volume indicator remains below its negative trigger line. The small improvement in the indicators has not yet been enough to change the rating. It remains BEARISH for the intermediate term.
On the short term the Index is still below its negative sloping moving average line but is just about ready to move above the line. The momentum indicator is moving higher and has crossed its trigger line to the up side. It is still in its negative zone but has breached above that oversold line. The trigger line has turned to the up side. Still, not enough improvement to change the rating. It remains BEARISH on the short term.
As for the immediate direction of least resistance, with most of the daily action taking place in a downward direction (after the initial huge open) the direction of least resistance must be considered to the down side. The indicators are suggesting the opposite view with the Index above its very short term moving average line and the Stochastic Oscillator continuing to move higher but I’ll go with the trading direction.
Merv’s Daily Uranium Index
Market Data
Open: 126.59
Hugh: 131.82
Low: 108.88
Close: 117.14
Volume: 8058
Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.
Yesterday was a holiday in Canada and the Stock Exchange was closed, so no commentary or Index. Most of the stocks are traded on the Canadian Exchanges.
Today we saw the effects of the big rise in the markets world wide on Monday. The Canadian stocks opened way up there but then very soon started their descend and ended the day near their low. The candlestick chart shows this lower close versus the open by a solid body in the candle. An open body as we see on so many up days indicates an upside close versus the open, the normal up day. So, was this REALLY an up day or was it a down day taking into account the fact that we had no Monday trading?
The Merv's Daily Uranium Index closed up on the day by 14.43 points or 14.04%. There were 39 winners, 9 losers and 2 going nowhere. Of the five largest stocks, Cameco gained 16.3%, Denison gained 21.0%, Paladin gained 17.4%, Uranium One lost 2.2% and USEC went nowhere with a zero gain or loss. The best gainer on the day was Forsys Metals with a 75.3% gain although Xemplar Energy was right behind with a 73.1% gain. The biggest loser was Bayswater Uranium with a loss of 12.0%.
Well, we are having some movement in the indicators but as yet they are having little effect. On the intermediate term the Index remains below its negative moving average line and the momentum indicator remains in its negative zone. The indicator has moved higher and has crossed its trigger line to the up side. The trigger, however, has not yet turned to the up side. In addition, the indicator has moved above its oversold line for an indication of a possible rally in progress. The volume indicator remains below its negative trigger line. The small improvement in the indicators has not yet been enough to change the rating. It remains BEARISH for the intermediate term.
On the short term the Index is still below its negative sloping moving average line but is just about ready to move above the line. The momentum indicator is moving higher and has crossed its trigger line to the up side. It is still in its negative zone but has breached above that oversold line. The trigger line has turned to the up side. Still, not enough improvement to change the rating. It remains BEARISH on the short term.
As for the immediate direction of least resistance, with most of the daily action taking place in a downward direction (after the initial huge open) the direction of least resistance must be considered to the down side. The indicators are suggesting the opposite view with the Index above its very short term moving average line and the Stochastic Oscillator continuing to move higher but I’ll go with the trading direction.
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