After The Close, 30 Apr 2009
Merv’s Daily Uranium Index
Market Data
Open: 182.55
High: 188.92
Low: 171.50
Close: 175.75
Volume: 14456
Note that the volume is an average volume of round lot sales for the 5 0 component stocks. For total volume, multiply by 5000.
Wouldn’t you just know it? The few days that I’m not available all hell breaks loose on the up side. The day I get back we have a down day. Oh well, after the advance of the past several days one should have expected a rest for the Index. Let’s hope the rest period does not take the Index too far down although a move back to support around 160 or even slightly below would not be a total surprise. We’ve had a couple of weeks with the uranium price moving higher, this week by $2.00, so maybe this is what’s propelling the stock prices. But let’s see what the charts and indicators are telling us.
First, the daily tally. The Merv’s Daily Uranium Index closed lower by 3.95 points or 2.20%. There were 16 winners, 32 losers and 2 going nowhere. The largest five stocks by market value were mixed although the pressure was to the down side. Cameco gained 0.2%, First Uranium gained 1.9%, Paladin lost 6.8%, Uranium One lost 7.0% and USEC lost 4.8%. The best performer on the day was Purepoint Uranium with a gain of 18.8% while the worst performer was Titan Uranium with a loss of 20.7%.
A brief comment about the P&F chart. It has given us a bull trend confirmation with the crossing of the down trend line. The projection remains the 300 level as previously mentioned.
Looking at the intermediate term all indicators are in place on the up side. The Daily Index is above its positive sloping moving average line and the momentum indicator is in its positive zone above its positive trigger line. The volume indicator had made new all time highs yesterday but gave some of that height up today. It is still quite positive and above its positive trigger line. For the intermediate term the rating is BULLISH and in no immediate danger of reversing.
On the short term things are very much the same. The Daily Index is above its very steep upward sloping moving average line and the momentum indicator is in its positive zone well inside its overbought zone. It remains above its positive trigger line but only slightly. Another down Index day and this indicator just might give us a warning of more downside to come. As for the volume action, it has been improving on the up side but today, a down day, the volume was almost identical to yesterdays up day. Still all remains in place for a BULLISH short term rating.
As for the immediate direction of least resistance, that should now be considered as lateral with a negative bias. The aggressive Stochastic Oscillator, which had been in its overbought zone, has now dropped below the overbought line and below its negative trigger line. This is warning us of at least a short negative time ahead.
With the bull move we have had over the previous seven days one should sit back and see what the next few days will bring. This is not the time to be on the buy side as lower prices are a greater possibility than a continuation of the up side. The up side should continue after a rest or reaction period and one might be able to pick up stock at slightly lower prices during such rest period time.
I am continuing to prune the component stocks just a little and you will note the slight difference in the list during the week-end table. I am trying to ensure that the 50 component stocks include not only all the largest and most active stocks but also some of the “pennies”, but the more active ones.
Merv’s Daily Uranium Index
Market Data
Open: 182.55
High: 188.92
Low: 171.50
Close: 175.75
Volume: 14456
Note that the volume is an average volume of round lot sales for the 5 0 component stocks. For total volume, multiply by 5000.
Wouldn’t you just know it? The few days that I’m not available all hell breaks loose on the up side. The day I get back we have a down day. Oh well, after the advance of the past several days one should have expected a rest for the Index. Let’s hope the rest period does not take the Index too far down although a move back to support around 160 or even slightly below would not be a total surprise. We’ve had a couple of weeks with the uranium price moving higher, this week by $2.00, so maybe this is what’s propelling the stock prices. But let’s see what the charts and indicators are telling us.
First, the daily tally. The Merv’s Daily Uranium Index closed lower by 3.95 points or 2.20%. There were 16 winners, 32 losers and 2 going nowhere. The largest five stocks by market value were mixed although the pressure was to the down side. Cameco gained 0.2%, First Uranium gained 1.9%, Paladin lost 6.8%, Uranium One lost 7.0% and USEC lost 4.8%. The best performer on the day was Purepoint Uranium with a gain of 18.8% while the worst performer was Titan Uranium with a loss of 20.7%.
A brief comment about the P&F chart. It has given us a bull trend confirmation with the crossing of the down trend line. The projection remains the 300 level as previously mentioned.
Looking at the intermediate term all indicators are in place on the up side. The Daily Index is above its positive sloping moving average line and the momentum indicator is in its positive zone above its positive trigger line. The volume indicator had made new all time highs yesterday but gave some of that height up today. It is still quite positive and above its positive trigger line. For the intermediate term the rating is BULLISH and in no immediate danger of reversing.
On the short term things are very much the same. The Daily Index is above its very steep upward sloping moving average line and the momentum indicator is in its positive zone well inside its overbought zone. It remains above its positive trigger line but only slightly. Another down Index day and this indicator just might give us a warning of more downside to come. As for the volume action, it has been improving on the up side but today, a down day, the volume was almost identical to yesterdays up day. Still all remains in place for a BULLISH short term rating.
As for the immediate direction of least resistance, that should now be considered as lateral with a negative bias. The aggressive Stochastic Oscillator, which had been in its overbought zone, has now dropped below the overbought line and below its negative trigger line. This is warning us of at least a short negative time ahead.
With the bull move we have had over the previous seven days one should sit back and see what the next few days will bring. This is not the time to be on the buy side as lower prices are a greater possibility than a continuation of the up side. The up side should continue after a rest or reaction period and one might be able to pick up stock at slightly lower prices during such rest period time.
I am continuing to prune the component stocks just a little and you will note the slight difference in the list during the week-end table. I am trying to ensure that the 50 component stocks include not only all the largest and most active stocks but also some of the “pennies”, but the more active ones.
2 comments:
Merv
Where can i find your charts for U stocks please?
I would like to see the ones you have been pruning and also your penny recs
With thanks
There are many web sites that provide stock charts. Many of these allow you to choose the indicators you might want displayed. The best site, in my opinion, is www.stockcharts.com.
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