Merv's Weekly Commentary 07 June 2009

Merv’s Weekly Uranium Review
for week ending 05 June 2009

Merv’s Daily Uranium Index
Market Data for Friday 05 June 2009

Open: 189.14
Hugh: 192.89
Low: 182.89
Close: 187.82
Volume: 8803

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

We’ve been in this box for well over a month now. It should be time to get the heck out, don’t you think?

While the short term is getting more and more frustrating, again, with speculators getting whip-lashed (or whip-sawed?) almost on a weekly basis, the intermediate and long term continue to hold their own. The intermediate term moving average line is starting to zero in on the box and it wouldn’t be long before it and the Index start to battle it out for space, unless the Index decides to take off for higher levels (let’s hope).

The Friday’s action was another holding action with the Index basically going nowhere. Although it closed a little higher it would have shown a small loss if calculated per the Weekly Index method. The Merv’s Daily Uranium Index closed up 0.88 points or 0.47% of Friday. There were 20 winners, 25 losers and 5 sitting on the fence. There was one loser among the five largest stocks. Cameco gained 1.3%, First Uranium lost 0.7%, Paladin gained 0.2%, Uranium One gained 15.5% and USEC gained 1.2%. The best performer of the day was Uranium One with that 15.5% gain. Well, Uranium One speculators are probably saying “It’s about time”. The worst performer on the day was Wescan Goldfields with a loss of 10.0%.

For the week as a whole, the Merv’s Weekly Uranium Index closed up 61.12 points or 1.10%. Not a big weekly gain but a gain anyway. There were 20 weekly winners, 25 weekly losers and 5 going nowhere. As for those five largest stocks by market value, Cameco gained 1.7% on the week, First Uranium lost 0.7%, Paladin gained 2.9%, Uranium One lost 1.8% and USEC gained 15.1%. The best weekly winner was East Asia Minerals with a weekly gain of 52.0% while the worst loser on the week was Rockgate Capital with a weekly loss of 15.0%.

Nothing much has changed in the long term rating. Using either of the Indices we have the Index above its positive moving average line. The Weekly Index momentum indicator remains just above its neutral line in the positive zone. The Daily Index long term momentum indicator remains just below its neutral line in the negative zone, although above its positive trigger line. In either case whether using the Weekly or Daily Index the long term rating remains BULLISH.

The intermediate term rating also remains unchanged. The Daily Index remains above its moving average line and the line continues to point upward. The momentum indicator remains in its positive zone but just slightly below its still positive sloping trigger line. The volume indicator continues to act strong although it is not quite back into new all time highs. It is positive and above its positive trigger line. The intermediate term rating remains BULLISH.

On the short term we are back into the positive again. The Daily Index is above its moving average line and the line slope is positive. The momentum indicator remains in its positive zone but is below its negative sloping trigger line. It looks like the daily volume action is getting back to more normal levels after the Uranium One fury. For now the short term rating is back to a BULLISH rating.

As for the immediate direction of least resistance, that would be back to the lateral as the Index has not shown a desire to get out of the box, despite a day or so, here and there, when it makes a one day move of any size.