After The Close, 29 Jan 2009
Merv’s Daily Uranium Index
Market Data
Open: 139.05
High: 142.08
Low: 134.97
Close: 138.36
Volume: 5081
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 minor day in the uranium stock market, this time a small downer. I really expected an upper but one does not argue with the market. Instead of telling the market what is should do (fundamental) one should always accept what the market itself is telling you it is doing (technical). But always remember that old saying (is there any other kind?), “the markets will do what they have to do to frustrate the masses of investors”.
The Merv’s Daily Uranium Index closed lower by 2.24 points or 1.59%. There were 17 winners, 24 losers and 9 going nowhere. When we have more than a few going nowhere we can assume that the market is undecided as to its direction. So we have the on going lateral trend. All of the five largest stocks were bummers. Cameco lost 2.3%, Paladin lost 6.2%, Uranium One lost 2.5%, Uranium Participation lost 6.3% and USEC lost 2.3%. The best winner on the day was Xemplar Energy with a gain of 33.8% while the loser of the day was Western Prospector with a loss of 15.8%.
Yesterday it looked like the intermediate term was starting to perk up. Today, I’m not so sure. Although the Index remains above its positive sloping moving average line the momentum, which yesterday looked promising, today has reversed back towards the down side. It is still very slightly below its neutral line and has once more dropped below its trigger line. The trigger, which turned upwards yesterday, has started a turn towards the down side but didn’t quite make it. It ended exactly at a horizontal level. Tomorrow should see it back to the up side or continuing today’s trend and resulting in a negative slope. In the mean time the rating has remained as it was yesterday, BULLISH.
On the short term things are changing almost daily. The Index closed a hair below its short term moving average line. While the line was in a lateral slope yesterday it went slightly negative today. This could be expected as long as we’re in this narrow lateral trend. The momentum indicator remains slightly positive but has again moved just below its trigger line. The trigger has also turned to the negative slope. Unfortunately, even such slight Index and indicator moves can cause a huge change in rating. We are back to a full BEARISH rating once more. It would take only a minor upside Index move and we could be back to the bullish side so on a day to day basis I would not jump with joy or get too concerned if the rating here should change on a daily basis. Wait for it to stabilize.
As for the direction of least resistance, I am back to the lateral direction and should stay there until a more serious indication of a change comes along.
Merv’s Daily Uranium Index
Market Data
Open: 139.05
High: 142.08
Low: 134.97
Close: 138.36
Volume: 5081
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 minor day in the uranium stock market, this time a small downer. I really expected an upper but one does not argue with the market. Instead of telling the market what is should do (fundamental) one should always accept what the market itself is telling you it is doing (technical). But always remember that old saying (is there any other kind?), “the markets will do what they have to do to frustrate the masses of investors”.
The Merv’s Daily Uranium Index closed lower by 2.24 points or 1.59%. There were 17 winners, 24 losers and 9 going nowhere. When we have more than a few going nowhere we can assume that the market is undecided as to its direction. So we have the on going lateral trend. All of the five largest stocks were bummers. Cameco lost 2.3%, Paladin lost 6.2%, Uranium One lost 2.5%, Uranium Participation lost 6.3% and USEC lost 2.3%. The best winner on the day was Xemplar Energy with a gain of 33.8% while the loser of the day was Western Prospector with a loss of 15.8%.
Yesterday it looked like the intermediate term was starting to perk up. Today, I’m not so sure. Although the Index remains above its positive sloping moving average line the momentum, which yesterday looked promising, today has reversed back towards the down side. It is still very slightly below its neutral line and has once more dropped below its trigger line. The trigger, which turned upwards yesterday, has started a turn towards the down side but didn’t quite make it. It ended exactly at a horizontal level. Tomorrow should see it back to the up side or continuing today’s trend and resulting in a negative slope. In the mean time the rating has remained as it was yesterday, BULLISH.
On the short term things are changing almost daily. The Index closed a hair below its short term moving average line. While the line was in a lateral slope yesterday it went slightly negative today. This could be expected as long as we’re in this narrow lateral trend. The momentum indicator remains slightly positive but has again moved just below its trigger line. The trigger has also turned to the negative slope. Unfortunately, even such slight Index and indicator moves can cause a huge change in rating. We are back to a full BEARISH rating once more. It would take only a minor upside Index move and we could be back to the bullish side so on a day to day basis I would not jump with joy or get too concerned if the rating here should change on a daily basis. Wait for it to stabilize.
As for the direction of least resistance, I am back to the lateral direction and should stay there until a more serious indication of a change comes along.
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