After The Close, 04 May 2009
Merv’s Daily Uranium Index
Market Data
Open: 185.92
High: 193.81
Low: 182.17
Close: 189.53
Volume: 10007
Note that the volume is an average volume of round lot sales for the 5 0 component stocks. For total volume, multiply by 5000.
This should be an easy commentary. With the Daily Index up almost another 4% it almost looks like the sky is the limit. Of course we see this every now and then, a supper advance that goes on and on but we know it will end at some point, we just don’t really know when. After an advance of the past several trading days we ARE getting closer and closer to some kind of top, hopefully a temporary top. Buying at this point is fraught with extra risk of getting in at a high price. On the other hand if we are in for a long term bull market almost any time is the right time to get in.
The Merv’s Daily Uranium Index was up another 7.13 points or 3.91%. There were 39 winners, 10 losers and only one confused as to which way to go. I like that 39 to 10 ratio. As for the five largest stocks, they were all on the up side. Cameco was up only 1.5%, First Uranium was up 12.6%, Paladin was up 3.3%, Uranium One was up 8.2% and USEC was up 5.1%. The best performer was Bayswater (last weeks upside winner) with another gain of 23.1% while the worst performer couldn’t do any better than a loss of 3.6%, that would be Altius Minerals.
Everything mentioned during the week-end commentary is still valid. No need to go over it again. One can read the week-end commentary. Both periods have BULLISH ratings.
As for the immediate direction of least resistance, I can’t see much more upside for now and am seeing the Index turn sideways or lower. The Aggressive Stochastic Oscillator has now dropped below its overbought line and below its negative trigger line. This is suggesting the very short term internal strength behind the Index move is deteriorating, although it is still of a positive value. It’s time for caution.
Merv’s Daily Uranium Index
Market Data
Open: 185.92
High: 193.81
Low: 182.17
Close: 189.53
Volume: 10007
Note that the volume is an average volume of round lot sales for the 5 0 component stocks. For total volume, multiply by 5000.
This should be an easy commentary. With the Daily Index up almost another 4% it almost looks like the sky is the limit. Of course we see this every now and then, a supper advance that goes on and on but we know it will end at some point, we just don’t really know when. After an advance of the past several trading days we ARE getting closer and closer to some kind of top, hopefully a temporary top. Buying at this point is fraught with extra risk of getting in at a high price. On the other hand if we are in for a long term bull market almost any time is the right time to get in.
The Merv’s Daily Uranium Index was up another 7.13 points or 3.91%. There were 39 winners, 10 losers and only one confused as to which way to go. I like that 39 to 10 ratio. As for the five largest stocks, they were all on the up side. Cameco was up only 1.5%, First Uranium was up 12.6%, Paladin was up 3.3%, Uranium One was up 8.2% and USEC was up 5.1%. The best performer was Bayswater (last weeks upside winner) with another gain of 23.1% while the worst performer couldn’t do any better than a loss of 3.6%, that would be Altius Minerals.
Everything mentioned during the week-end commentary is still valid. No need to go over it again. One can read the week-end commentary. Both periods have BULLISH ratings.
As for the immediate direction of least resistance, I can’t see much more upside for now and am seeing the Index turn sideways or lower. The Aggressive Stochastic Oscillator has now dropped below its overbought line and below its negative trigger line. This is suggesting the very short term internal strength behind the Index move is deteriorating, although it is still of a positive value. It’s time for caution.
4 comments:
Merv,
it's some time ago that you showed us the P&F chart of your index. Is there a new message from that chart type?
maxxu
maxxu
Ask and thou shall receive. See latest posting.
would you buy PNPFF right now? It has had quite a run, buy it keeps on going...
Sorry about the delay. I use the Canadian data for Pinetree as my data source does not provide me with pink sheets data, but the trend should be the same except for the currency difference.
Pinetree had a break-out some time back and a recent long term break above several month resistance level. It is on a roll right now but expect it to take a rest or even a slight reversal to consolidate recent gains. I have P&F projections into the $5-$6 range so more upside is expected. Although more upside is expected ALWAYS have a stop loss in place to protect your capital against surprises, which do happen unexpectedly.
Would I buy now? I think I would wait and see if it drops another 10 or 20% and catch it then, otherwise I would buy on the next move at about the $2.30 level, Canadian.
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