After The Close, 02 Mar 2009
Merv’s Daily Uranium Index
Market Data
Open: 132.10
High: 133.30
Low: 121.63
Close: 125.01
Volume: 5088
Note that the volume is an average volume of round lot sales for the 5 0 component stocks. For total volume, multiply by 5000.
Apologies for missing the week-end commentary, analysis and table. It was traveling time for the funeral of a good friend.
Well, today was not one of our better days. I’ve been complaining that the Daily Index was moving in small frustrating moves, going nowhere. Today was not a small move and it did go somewhere, although not where we were wishing it would go. I guess we can blame it on the overall stock market bearish environment due to - what? Probably the bearish economic commentaries coming from the White House these days. The White House has not been a friend to the market player, unless one was a short seller.
The close today was definitely below the previous “box” pattern support line. It had previously broken below that up trending channel lower support line. The next major support level would be the previous low at the 92.0 level.
The Merv’s Daily Uranium Index closed lower today by 9.40 points or 6.99%. There were only 5 winners on the day. There were 41 losers and 4 going nowhere. As for the five largest stocks by market value, well they were all losers. Cameco lost 5.7%, Paladin lost 109.7%, Uranium One lost 6.2%, Uranium Participation lost 7.4% and USEC lost 24.9%. The best of those 5 winners was Wescan Goldfields with a gain of 18.2% while the loser of the bunch was that USEC with a 24.9% loss.
Since I did not get the week-end analysis posted I guess I should briefly go through where we are from the long term perspective. Well, nothing has changed from the previous week. The Merv’s Daily Uranium Index remains below its negative sloping long term moving average line and the momentum indicator remains in its negative zone below its negative sloping trigger line. The long term volume indicator is the only indicator that is still positive. It is at its high level from many months and is still almost at the top of its trend. It is above its positive sloping trigger line and will probably remain so for some time. Although the volume indicator is positive it has little effect on the rating when the Index is dropping. The volume indicator is very often a lagging indicator at a top or when the Index (or stock) is topping and going negative. The long term rating therefore remains BEARISH.
The intermediate term went bearish again early last week and remains so. The Daily Index remains below its moving average line and the line has, today, turned downwards. The momentum indicator remains inside its negative zone and moving lower. It also remains below its negative sloping trigger line. Here again, the volume indicator is the only positive and as with the long term, it is at its high level above its positive trigger line. With the breaking of the two support levels the intermediate term rating remains BEARISH.
On the short term everything is negative. The Daily Index remains below its short term negative sloping moving average line and the momentum indicator remains inside its negative zone and going lower. It has toyed over the past frew days with its trigger line but once more the momentum is below its trigger and the trigger is negative. All in all, the short term remains BEARISH.
As for the immediate direction of least resistance, that would finally be to the down side. However, with a drop as we have had in the overall market today it would not be unusual to get a bounce tomorrow. This could affect the uranium Index but let’s wait for that to happen.
Tomorrow I’m on the road heading home so the posting might be a little on the late side.
Merv’s Daily Uranium Index
Market Data
Open: 132.10
High: 133.30
Low: 121.63
Close: 125.01
Volume: 5088
Note that the volume is an average volume of round lot sales for the 5 0 component stocks. For total volume, multiply by 5000.
Apologies for missing the week-end commentary, analysis and table. It was traveling time for the funeral of a good friend.
Well, today was not one of our better days. I’ve been complaining that the Daily Index was moving in small frustrating moves, going nowhere. Today was not a small move and it did go somewhere, although not where we were wishing it would go. I guess we can blame it on the overall stock market bearish environment due to - what? Probably the bearish economic commentaries coming from the White House these days. The White House has not been a friend to the market player, unless one was a short seller.
The close today was definitely below the previous “box” pattern support line. It had previously broken below that up trending channel lower support line. The next major support level would be the previous low at the 92.0 level.
The Merv’s Daily Uranium Index closed lower today by 9.40 points or 6.99%. There were only 5 winners on the day. There were 41 losers and 4 going nowhere. As for the five largest stocks by market value, well they were all losers. Cameco lost 5.7%, Paladin lost 109.7%, Uranium One lost 6.2%, Uranium Participation lost 7.4% and USEC lost 24.9%. The best of those 5 winners was Wescan Goldfields with a gain of 18.2% while the loser of the bunch was that USEC with a 24.9% loss.
Since I did not get the week-end analysis posted I guess I should briefly go through where we are from the long term perspective. Well, nothing has changed from the previous week. The Merv’s Daily Uranium Index remains below its negative sloping long term moving average line and the momentum indicator remains in its negative zone below its negative sloping trigger line. The long term volume indicator is the only indicator that is still positive. It is at its high level from many months and is still almost at the top of its trend. It is above its positive sloping trigger line and will probably remain so for some time. Although the volume indicator is positive it has little effect on the rating when the Index is dropping. The volume indicator is very often a lagging indicator at a top or when the Index (or stock) is topping and going negative. The long term rating therefore remains BEARISH.
The intermediate term went bearish again early last week and remains so. The Daily Index remains below its moving average line and the line has, today, turned downwards. The momentum indicator remains inside its negative zone and moving lower. It also remains below its negative sloping trigger line. Here again, the volume indicator is the only positive and as with the long term, it is at its high level above its positive trigger line. With the breaking of the two support levels the intermediate term rating remains BEARISH.
On the short term everything is negative. The Daily Index remains below its short term negative sloping moving average line and the momentum indicator remains inside its negative zone and going lower. It has toyed over the past frew days with its trigger line but once more the momentum is below its trigger and the trigger is negative. All in all, the short term remains BEARISH.
As for the immediate direction of least resistance, that would finally be to the down side. However, with a drop as we have had in the overall market today it would not be unusual to get a bounce tomorrow. This could affect the uranium Index but let’s wait for that to happen.
Tomorrow I’m on the road heading home so the posting might be a little on the late side.
No comments:
Post a Comment