Merv's Daily Commentary 29 June 2009

Merv’s Daily Uranium Index
Market Data

Open: 176.48
High: 179.56
Low: 171.86
Close: 175.56
Volume: 3883


Note that the volume is an average volume of round lot sales for the 5 0 component stocks. For total volume, multiply by 5000.

The next couple of weeks posting will be somewhat sporadic. It’s that time of year for B-B-Q, beer and relaxation, and visiting relatives. I will try to post most days, and especially if there is some serious action.

Today, the action was not all that significant so the posting will be brief. My most popular commenter, Anonymous, asked about the AROON indicator. I had never heard of it but did some brief checking. The indicator is shown today in what I refer to as an intermediate term indicator. By changing the time period in the calculation of the indicators one can develop it for any time period, not unlike the RSI. No use going into details here, you can check it out on several sites just by googling AROON. This seems to be a battle between good and bad and a simple way of looking at it is when the two cross. When the good (green) crosses the bad (red) to the up side, that’s positive on the intermediate term. When the good crosses the bad to the down side, that negative. There is more to this indicator but I’ll leave it for you to look it up if you are interested. I’ll stick with the RSI.

The Merv’s Daily Uranium Index closed lower by just a little. It was down 1.32 points or 0.75%. There were 14 winners, 28 losers and 8 going nowhere. Cameco gained 0.5%, First Uranium lost 0.7%, Paladin gained 1.6%, Uranium One went nowhere and USEC gained 0.6%. The best winner on the day was Xemplar Energy with a gain of 14.0% while the loser on the day was Alberta Star with a loss of 13.3%.

The intermediate term has had some reversals lately. That’s what happens when the Index and indicators come too close top each other. The Daily Index dropped below its moving average line once more although the line slope continues to the up side. The momentum indicator remains in its positive zone and above its still negative sloping trigger line. The volume indicator continues to perform well and remains above its positive trigger line. The intermediate term rating has been down graded today to a NEUTRAL rating.

Using a short term period for the AROON indicator, it seems to have given pretty decent signals from the short term stand point. As for the normal indicators, the short term indicators remain unchanged from the week-end, therefore the rating remains the same at a + NEUTRAL rating.

I’ll go with the lateral for another day as far as the immediate direction of least resistance.