After The Close, 22 June 2009
Merv’s Daily Uranium Index
Market Data
Open: 175.44
High: 176.21
Low: 163.25
Close: 165.44
Volume: 5420
Note that the volume is an average volume of round lot sales for the 5 0 component stocks. For total volume, multiply by 5000.
Well, one consolation, if we are looking for consolation, is the low daily volume action with today’s Index drop. The box is now most definitely broken on the down side and the direction looks like it is heading towards the next support at around the 150 level.
Although the support is broken and the trend is down we have a slightly better picture in our P&F chart (I’ll show it tomorrow). It also shows the break below support BUT I require a move below the up trend line as a second signal before the P&F declares a reversal. That break below the up trend line has not yet happened. It would require a move to the 155 level on the short term P&F chart. At that point the short term P&F chart would project the move down to the 105 level, which is just above our late 2008 low from the previous bear market.
The long term P&F chart, which I had shown in the past, is still far from any reversal signal and still has a valid projection to the 300 level.
Well, let’s see what damage was done with today’s action.
The Merv’s Daily Uranium Index closed lower by 12.42 points or 6.98%. There were all of 3 winners overshadowed by 43 losers and 4 on the sidelines. As for the five largest stocks, bummers all the way. Cameco lost 8.2%, First Uranium lost 12.5%, Paladin lost 2.4%, Uranium one lost 8.3% and USEC lost 5.9%. The best of the three winners was CanAlaska Uranium with a big gain of 3.0% while the loser of the bunch was Uranium Resources with a loss of 17.9%.
The old neck is really starting to hurt with all these whip lashes. The Daily Index closed back below its intermediate term moving average line and this time the line followed with it. The momentum indicator is still moving sharply lower below its negative trigger line but remains just a hair above its neutral line in the positive zone. The volume indicator remains the encouraging indicator continuing to move above its positive trigger line. All in all, the intermediate term rating went BEARISH today. I don’t make these things up, I just go with what the markets give me.
On the short term everything remains as it was before, except more negative. The Index remains below its negative sloping moving average line and the momentum indicator remains in its negative zone below its negative trigger line. The daily volume action has diminished somewhat, which is good to see on the down side. Not as much enthusiasm to get out yet. The short term rating remains BEARISH.
As for the immediate direction of least resistance, I really, really meant for a positive Monday, but next Monday not this week. I was really (finger crossed) meaning to say a down day today. And today I will continue with the down side as the least resistance direction for tomorrow. If you believe me can I chalk it up to two days in a row or am I back to zero?
Merv’s Daily Uranium Index
Market Data
Open: 175.44
High: 176.21
Low: 163.25
Close: 165.44
Volume: 5420
Note that the volume is an average volume of round lot sales for the 5 0 component stocks. For total volume, multiply by 5000.
Well, one consolation, if we are looking for consolation, is the low daily volume action with today’s Index drop. The box is now most definitely broken on the down side and the direction looks like it is heading towards the next support at around the 150 level.
Although the support is broken and the trend is down we have a slightly better picture in our P&F chart (I’ll show it tomorrow). It also shows the break below support BUT I require a move below the up trend line as a second signal before the P&F declares a reversal. That break below the up trend line has not yet happened. It would require a move to the 155 level on the short term P&F chart. At that point the short term P&F chart would project the move down to the 105 level, which is just above our late 2008 low from the previous bear market.
The long term P&F chart, which I had shown in the past, is still far from any reversal signal and still has a valid projection to the 300 level.
Well, let’s see what damage was done with today’s action.
The Merv’s Daily Uranium Index closed lower by 12.42 points or 6.98%. There were all of 3 winners overshadowed by 43 losers and 4 on the sidelines. As for the five largest stocks, bummers all the way. Cameco lost 8.2%, First Uranium lost 12.5%, Paladin lost 2.4%, Uranium one lost 8.3% and USEC lost 5.9%. The best of the three winners was CanAlaska Uranium with a big gain of 3.0% while the loser of the bunch was Uranium Resources with a loss of 17.9%.
The old neck is really starting to hurt with all these whip lashes. The Daily Index closed back below its intermediate term moving average line and this time the line followed with it. The momentum indicator is still moving sharply lower below its negative trigger line but remains just a hair above its neutral line in the positive zone. The volume indicator remains the encouraging indicator continuing to move above its positive trigger line. All in all, the intermediate term rating went BEARISH today. I don’t make these things up, I just go with what the markets give me.
On the short term everything remains as it was before, except more negative. The Index remains below its negative sloping moving average line and the momentum indicator remains in its negative zone below its negative trigger line. The daily volume action has diminished somewhat, which is good to see on the down side. Not as much enthusiasm to get out yet. The short term rating remains BEARISH.
As for the immediate direction of least resistance, I really, really meant for a positive Monday, but next Monday not this week. I was really (finger crossed) meaning to say a down day today. And today I will continue with the down side as the least resistance direction for tomorrow. If you believe me can I chalk it up to two days in a row or am I back to zero?
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