Merv's Weekly Commentary 31 May 2009

Merv’s Weekly Uranium Review
for week ending 29 May 2009

Merv’s Daily Uranium Index
Market Data for Friday 29 May 2009

Open: 184.49
Hugh: 191.46
Low: 180.39
Close: 185.24
Volume: 11495

Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.

This is a recording. We’re still in the box and basically moving sideways.

I don’t know if it’s just my imagination or not but it seems that the market makes a few days move and then goes into hibernation for months, then comes out and makes a move for a few more days and goes back into months of hibernation again. This is getting annoying. The metal itself was doing great there for a few weeks but this past week stumbled again with $2.00 on the down side. I’m not sure what its going to take to REALLY get this market moving but I guess we’ll just have to tough it out and wait for the move.

The Merv’s Daily Uranium Index closed on Friday on the up side with a 2.73 point or 1.49% advance. There were 27 winners on the day along with 15 losers and 8 just sitting there on their hands doing nothing. As for those five largest stocks, Cameco went nowhere, First Uranium lost 1.7%, Paladin lost 2.0%, Uranium One lost 8.7% and USEC gained 1.9%. The best performer on the day was Uranium Energy with a gain of 29.8% while the loser was Uranium One with that loss of 8.7%.

As for the week as a whole, the Merv’s Weekly Uranium Index closed the week up 140.03 points or 2.59%. There were 26 weekly winners, 22 weekly losers and two going nowhere. As for the five largest stocks, Cameco gained 2.5% on the week, First Uranium lost 1.4%, Paladin gained 1.4%, Uranium One lost 35.1% and USEC gained 6.4%. The best weekly winner was Mawson Resources with a weekly win of 42.9% while the loser of the week was none other than Uranium One with that loss of 35.1%.

Although the Indices are still in a box they both (Daily and Weekly) are well above their long term positive sloping moving average lines. As for the long term momentum indicator, we have a difference of opinion between the Daily Index and the Weekly Index. The Weekly Index momentum has been in its positive zone for a few weeks now but the long term Daily Index momentum indicator remains in its negative zone. The Daily momentum is basically moving sideways just below its neutral line. It is just above its positive sloping trigger line. With that I will retain the BULLISH rating for the long term.

On the intermediate term the Daily Index remains comfortably above its positive sloping moving average line. The momentum indicator remains in its positive zone and has moved above its trigger line with the trigger just turning positive. The volume indicator continues to be the gung-ho indicator and is back into new all time highs. Despite the Index refusal to move higher there seems to be more speculators betting that that is the eventual direction of the Index, and stocks. The intermediate term rating remains BULLISH.

The short term has been a problem lately moving up and down between bull and bear. That’s what happens when the Index is fooling around the moving average line. The Index is once more above its positive short term moving average line. The momentum remains in its positive zone (the one constant short term indicator for the past two and a half months) and has moved above its positive trigger line. The daily volume activity is still somewhat affected by the going on in Uranium One but it seems that the action is more to the up side than the down side. On the short term the rating remains BULLISH.

The immediate direction of least resistance remains lateral as long as the Index is in the box and not making any sudden moves.