Merv's Daily Commentary, 20 Jan 2009

After The Close, 20 Jan 2009

Merv’s Daily Uranium Index
Market Data

Open: 141.95
High: 145.23
Low: 134.73
Close: 137.07
Volume: 7192

Note that the volume is an average volume of round lot sales for the 5 0 component stocks. For total volume, multiply by 5000.

Well, we’re back to going nowhere fast. If this is just a rest period following a sharp up move then we should be in for the next move pretty soon, but wait for it. THE speech seems not to have done any good for the markets, uranium or the general market. Let’s see what the future holds. Markets are usually looking ahead and they don’t seem to be impressed with the potentials with this new Administration.

The Merv’s Daily Uranium Index closed lower by 4.89 points or 3.44%. There were 10 winners, 37 losers and 3 going nowhere. Of the five largest stocks, Cameco lost 3.2%, Paladin lost 8.2%, Uranium One lost 7.3%, Uranium Participation gained 3.7% and USEC lost 4.1%. The best winner of the day was Aurora Energy with a gain of 7.2% while the worst loser of the day was Western Prospectors with a loss of 17.5%.

The intermediate term just keeps on chucking along with changes coming at a very slow (relatively speaking) pace. The Daily Index remains above its positive sloping moving average line and the momentum indicator remains in its negative zone below its now negative sloping trigger line. The volume indicator is, however, still acting well and remains above its positive sloping trigger line. For today the intermediate term rating has been down graded a notch to + NEUTRAL.

The Index is right at the short term moving average line and any small move will cross the line up or down. Today the Index closed lower and crossed the moving average line on the down side. Unfortunately, the line itself has also just turned oh so gently to the down side. The momentum indicator remains in its positive zone but is moving lower and is below its negative trigger line. The daily volume action seems to be more on the positive side but not so much as to be a great positive. Putting all that together the short term rating has been downgraded all the way to a BEARISH rating.

As for the immediate direction of least resistance, I’ll stick with the lateral direction for another day.