After The Close, 03 Mar 2009
Merv’s Daily Uranium Index
Market Data
Open: 126.43
High: 131.01
Low: 120.73
Close: 125.70
Volume: 6239
Note that the volume is an average volume of round lot sales for the 5 0 component stocks. For total volume, multiply by 5000.
Could we be back to these frustrating miniscule daily moves again? Probably not but I guess we have to expect them every so often. After destroying the previous up trending channel, reader “anonymous” a couple of days ago pointed out a new down trending channel. Looking it over it could be the confines of the moves going forward but I’m still not 100% sure about the lower part of the channel. We’ll just go with it for now and see how it develops. We sophisticated technicians just go with the flow. Most of the time that’s where the action is.
The Merv’s Daily Uranium Index closed on the up side by less than a point, by 0.69 points to be more precise. That’s only a 0.55% move but it’s on the up side so we’ll go with that. There were 20 winners, 20 losers and 10 stocks going nowhere, another neutral type of day. As for those five largest stocks, Cameco gained 1.4%, Paladin gained 6.9%, Uranium One lost 3.9%, Uranium Participation gained 3.0% and USEC lost 5.6%. The best winner on the day was Bannerman with a gain of 26.0% while the loser on the day was Wescan Goldfields with a loss of 15.4%.
As mentioned above we most likely have a two month down trending channel. This is most evident in the momentum indicator although the momentum shown is a short term momentum. The intermediate term momentum shows a trend more lateral with a recent downside break. It is in its negative zone and below its negative trigger line. As for the Daily Index, it is below its intermediate term negative sloping moving average line. As for the volume indicator, it is the most positive indicator we have. The indicator has reached a new rally high and is at its highest level since mid last July. However, the intermediate term rating still remains BEARISH.
On the short term mention was made to the trending of the momentum indicator. It remains in its negative zone below its negative trigger line. We’ll just have to see if the down trending channel will continue for much longer. The Index remains below its negative sloping moving average line. The daily volume action is starting to perk up and just may be telling us something (positive). The divergence between the momentum and volume indicators has to be resolved. My bet would be on the volume, which is a positive indicator, but I still have to go with my summation of indicators and come up with a continuing BEARISH rating, short term wise.
As for the immediate direction of least resistance, once more I chicken out and go back to the lateral. Although the Index is moving downward it just doesn’t seem like it really wants to drop.
Merv’s Daily Uranium Index
Market Data
Open: 126.43
High: 131.01
Low: 120.73
Close: 125.70
Volume: 6239
Note that the volume is an average volume of round lot sales for the 5 0 component stocks. For total volume, multiply by 5000.
Could we be back to these frustrating miniscule daily moves again? Probably not but I guess we have to expect them every so often. After destroying the previous up trending channel, reader “anonymous” a couple of days ago pointed out a new down trending channel. Looking it over it could be the confines of the moves going forward but I’m still not 100% sure about the lower part of the channel. We’ll just go with it for now and see how it develops. We sophisticated technicians just go with the flow. Most of the time that’s where the action is.
The Merv’s Daily Uranium Index closed on the up side by less than a point, by 0.69 points to be more precise. That’s only a 0.55% move but it’s on the up side so we’ll go with that. There were 20 winners, 20 losers and 10 stocks going nowhere, another neutral type of day. As for those five largest stocks, Cameco gained 1.4%, Paladin gained 6.9%, Uranium One lost 3.9%, Uranium Participation gained 3.0% and USEC lost 5.6%. The best winner on the day was Bannerman with a gain of 26.0% while the loser on the day was Wescan Goldfields with a loss of 15.4%.
As mentioned above we most likely have a two month down trending channel. This is most evident in the momentum indicator although the momentum shown is a short term momentum. The intermediate term momentum shows a trend more lateral with a recent downside break. It is in its negative zone and below its negative trigger line. As for the Daily Index, it is below its intermediate term negative sloping moving average line. As for the volume indicator, it is the most positive indicator we have. The indicator has reached a new rally high and is at its highest level since mid last July. However, the intermediate term rating still remains BEARISH.
On the short term mention was made to the trending of the momentum indicator. It remains in its negative zone below its negative trigger line. We’ll just have to see if the down trending channel will continue for much longer. The Index remains below its negative sloping moving average line. The daily volume action is starting to perk up and just may be telling us something (positive). The divergence between the momentum and volume indicators has to be resolved. My bet would be on the volume, which is a positive indicator, but I still have to go with my summation of indicators and come up with a continuing BEARISH rating, short term wise.
As for the immediate direction of least resistance, once more I chicken out and go back to the lateral. Although the Index is moving downward it just doesn’t seem like it really wants to drop.
1 comment:
I missed that downtrend....thanks for that.
It appears to be almost perfectly correlated to the S&P 500.
The U's constantly seem to couple with whatever is negative! At least for the last 18 months or so.
Come to think of it, that is pretty easy considering almost everything is down for the last 18 months.
Stating the obvious I guess.
Thanks for the fresh perspective on the chart. I'm with you though, the market doesn't seem to want to go to much lower levels.
Bullish.
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