After The Close, 03 June 2009
Merv’s Daily Uranium Index
Market Data
Open: 188.87
High: 190.61
Low: 178.58
Close: 182.17
Volume: 9675
Note that the volume is an average volume of round lot sales for the 5 0 component stocks. For total volume, multiply by 5000.
That Daily Index just doesn’t want to get out of the box. Today’s decline was a little more than I expected given that the uranium price was up slightly this week. The short term trends seem to change rapidly and today it’s once more in the process of changing. The chart shows quite vividly the concept of a support line, once broken, becomes a resistance line. The short term momentum up trend line was broken a week or so back and has since resisted the upward movement of the indicator on two separate occasions. I guess I should have expected the reversal but it just didn’t catch my eye until today. I don’t think that “better late than never” is quite appropriate here.
The Merv’s Daily Uranium Index closed lower by 8.38 points or 4.40%. The winners and losers was a sea of red (for losers). There were only 3 winners in the crowd. There were 43 losers (the sea of red) and 4 hiding from the onslaught. All of the top five stocks by market value were losers. Cameco lost 4.9%, First Uranium lost 4.2%, Paladin lost 7.5%, Uranium One lost 8.8% and USEC lost 5.2%. The best winner out of the three was East Asia Minerals with a gain of 9.4% while the loser of the bunch was Uranium Resources with a loss of 13.9%. Actually, with the slaughter we encountered today I’m surprised that the worst loser was that small.
Although the decline today was not good it still had no effect on the intermediate term rating or indicators. The Index is still above its positive moving average line and the momentum indicator is still in its positive zone. The momentum has dropped below its trigger line and the trigger has turned down with the action but this one negative does not by itself change the rating. The volume indicator remains positive and above its positive trigger line. The rating remains BULLISH for now.
The short term is a little different. More than one indicator has changed with today’s events. The Index closed just below its moving average line and the line is turning but has not quite made it to the negative level. The momentum indicator remains just above its neutral line in the positive zone but has dropped below its trigger line and the trigger has turned to the down side. The daily volume action was high for a down day but again, the action of one stock is doing it. All in all, the short term rating has been down graded to a – NEUTRAL rating.
As for the immediate direction of least resistance, that should be to the down side after today’s action, but my batting average is not all that great lately.
Merv’s Daily Uranium Index
Market Data
Open: 188.87
High: 190.61
Low: 178.58
Close: 182.17
Volume: 9675
Note that the volume is an average volume of round lot sales for the 5 0 component stocks. For total volume, multiply by 5000.
That Daily Index just doesn’t want to get out of the box. Today’s decline was a little more than I expected given that the uranium price was up slightly this week. The short term trends seem to change rapidly and today it’s once more in the process of changing. The chart shows quite vividly the concept of a support line, once broken, becomes a resistance line. The short term momentum up trend line was broken a week or so back and has since resisted the upward movement of the indicator on two separate occasions. I guess I should have expected the reversal but it just didn’t catch my eye until today. I don’t think that “better late than never” is quite appropriate here.
The Merv’s Daily Uranium Index closed lower by 8.38 points or 4.40%. The winners and losers was a sea of red (for losers). There were only 3 winners in the crowd. There were 43 losers (the sea of red) and 4 hiding from the onslaught. All of the top five stocks by market value were losers. Cameco lost 4.9%, First Uranium lost 4.2%, Paladin lost 7.5%, Uranium One lost 8.8% and USEC lost 5.2%. The best winner out of the three was East Asia Minerals with a gain of 9.4% while the loser of the bunch was Uranium Resources with a loss of 13.9%. Actually, with the slaughter we encountered today I’m surprised that the worst loser was that small.
Although the decline today was not good it still had no effect on the intermediate term rating or indicators. The Index is still above its positive moving average line and the momentum indicator is still in its positive zone. The momentum has dropped below its trigger line and the trigger has turned down with the action but this one negative does not by itself change the rating. The volume indicator remains positive and above its positive trigger line. The rating remains BULLISH for now.
The short term is a little different. More than one indicator has changed with today’s events. The Index closed just below its moving average line and the line is turning but has not quite made it to the negative level. The momentum indicator remains just above its neutral line in the positive zone but has dropped below its trigger line and the trigger has turned to the down side. The daily volume action was high for a down day but again, the action of one stock is doing it. All in all, the short term rating has been down graded to a – NEUTRAL rating.
As for the immediate direction of least resistance, that should be to the down side after today’s action, but my batting average is not all that great lately.
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