After The Close, 22 Jan 2009
Merv’s Daily Uranium Index
Market Data
Open: 138.30
High: 141.45
Low: 134.12
Close: 137.30
Volume: 5050
Note that the volume is an average volume of round lot sales for the 5 0 component stocks. For total volume, multiply by 5000.
Another day and another mild negative. We are still in what I would call the rest or reaction period following a sharp up move. However, that up move was not all that big and I would not expect this rest period to last much longer. When a new trend starts, such as we are possibly witnessing now, we usually get an upward sharp move followed by a rest period. This rest period is usually the most dangerous. The up move could have been a fake-out and the subsequent move could then just continue into lower levels. I usually wait for the second move to be confirmed before I get all overjoyed at the action. That move would be confirmed when the Index once more turns upwards and makes a new high, closing above the 158 level. Technically, the move is still positive but whip-saws are not unknown.
The Merv’s Daily Uranium Index closed lower by 1.80 points or 1.29%. There were 16 winners, 25 losers and 9 going nowhere. Of the top five stocks, they were all losers. Cameco lost 4.8%, Paladin lost 5.3%, Uranium One lost 0.9%, Uranium Participation lost 0.4% and USEC lost 0.2%. The best performer of the day was Benton Resources with a gain of 14.3% while the worst loser of the bunch was East Asia Minerals with a loss of 18.9%.
The intermediate term indicators take time to change so on a day by day basis it looks like nothing much is happening, and today was another such day. The Index remains above its positive sloping moving average line and above that support level from the previous “box” activity. The momentum indicator is inching lower and remains in its negative zone below its negative trigger line, however, it is still above that up trend line from the October bottom. The volume indicator continues to show strength and is well above its intermediate term positive sloping trigger line. All in all, the intermediate term rating remains + NEUTRAL primarily due to the negative momentum.
Nothing much has changed on the short term although it would be here that we would most likely see the initial turn around in progress. For now the Index remains below a negative sloping moving average line and the momentum indicator remains in its positive zone but heading lower and is below its negative trigger line. The daily volume action is as one might expect during a rest period following an up move. On the short term the rating remains BEARISH.
As for the immediate direction of least resistance, that would continue to be to the lateral. However, looking at the very short term indicators they are all negative indicating we are in a very short term downside move. However, I think that support level is strong enough to hold the down move above the support, or at worst just a very little below.
Merv’s Daily Uranium Index
Market Data
Open: 138.30
High: 141.45
Low: 134.12
Close: 137.30
Volume: 5050
Note that the volume is an average volume of round lot sales for the 5 0 component stocks. For total volume, multiply by 5000.
Another day and another mild negative. We are still in what I would call the rest or reaction period following a sharp up move. However, that up move was not all that big and I would not expect this rest period to last much longer. When a new trend starts, such as we are possibly witnessing now, we usually get an upward sharp move followed by a rest period. This rest period is usually the most dangerous. The up move could have been a fake-out and the subsequent move could then just continue into lower levels. I usually wait for the second move to be confirmed before I get all overjoyed at the action. That move would be confirmed when the Index once more turns upwards and makes a new high, closing above the 158 level. Technically, the move is still positive but whip-saws are not unknown.
The Merv’s Daily Uranium Index closed lower by 1.80 points or 1.29%. There were 16 winners, 25 losers and 9 going nowhere. Of the top five stocks, they were all losers. Cameco lost 4.8%, Paladin lost 5.3%, Uranium One lost 0.9%, Uranium Participation lost 0.4% and USEC lost 0.2%. The best performer of the day was Benton Resources with a gain of 14.3% while the worst loser of the bunch was East Asia Minerals with a loss of 18.9%.
The intermediate term indicators take time to change so on a day by day basis it looks like nothing much is happening, and today was another such day. The Index remains above its positive sloping moving average line and above that support level from the previous “box” activity. The momentum indicator is inching lower and remains in its negative zone below its negative trigger line, however, it is still above that up trend line from the October bottom. The volume indicator continues to show strength and is well above its intermediate term positive sloping trigger line. All in all, the intermediate term rating remains + NEUTRAL primarily due to the negative momentum.
Nothing much has changed on the short term although it would be here that we would most likely see the initial turn around in progress. For now the Index remains below a negative sloping moving average line and the momentum indicator remains in its positive zone but heading lower and is below its negative trigger line. The daily volume action is as one might expect during a rest period following an up move. On the short term the rating remains BEARISH.
As for the immediate direction of least resistance, that would continue to be to the lateral. However, looking at the very short term indicators they are all negative indicating we are in a very short term downside move. However, I think that support level is strong enough to hold the down move above the support, or at worst just a very little below.
1 comment:
After being trapped in the basement for 3 months, looks like we can't find our way out of the first floor!!
Hopefully we won't fall through the trap door and back into the basement...
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