BASIC NOTES

Uranium Companies

There are very few pure uranium companies. Most companies, especially the small exploration type, are active in more than the uranium industry. This blog makes no attempt to guage the percentage of a companies activity that are related to the finding, mining or processing of uraniun. They all do, however, have some uranium activities (to the best of our review).

Merv's Uranium Indices

I have developed two Uranium Indices. They each have the same component stocks but are calculated using different methodologies. My weekly Index is based upon the average weekly performance of the component stocks. My daily Index is based upon the daily average of the component stocks open, high, low and close prices along with the daily average volume of all component stocks.

Click on the chart or table to enlage the view.



20 July 2009

Merv's Daily Commentary 20 July 2009


After The Close, 20 July 2009

Merv’s Daily Uranium Index
Market Data

Open: 170.00
High: 177.55
Low: 169.28
Close: 174.76
Volume: 4116


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

Looks like we’re back on the winning streak. Still, a little more to go before one can become more comfortable with the way things are progressing. The next resistance is at the 180 level but that only gets the Index into a heavy trading range between 180 and 195.

The Merv’s Daily Uranium Index closed up 4.52 points or 2.65%, a reasonable showing. There were 25 winners. 15 losers and 10 going nowhere. Some of the 5 largest had a good day while others not so good. Cameco gained 4.8%, First Uranium gained 8.7%, Paladin gained 4.9%, Uranium one went nowhere and USEC lost 3.3%. The best performer today was Strathmore Minerals with a gain of 25.0% while the loser on the day was Bayswater Uranium with a loss of 10.0%.

The intermediate term is starting to look better and better. The Daily Index closed above its intermediate term moving average line and the line turned to the up side. The momentum indicator continues to head higher inside its positive zone and above its positive trigger line. The volume indicator still needs a little more work before getting back into its all time high territory. However, it is trending higher and is above its positive sloping trigger line. All in all, the intermediate term rating has now gone back to the BULLISH side.

Everything is a-okay on the short term. The Index is above its positive moving average line, the momentum indicator is in its positive zone above its positive trigger line and all seems well with the world. Only the daily volume activity is causing some caution. I would sure like to see that volume pick up on the up side. In the mean time the short term rating is BULLISH.

As for the immediate direction of least resistance, I wouldn’t want to be a party pooper but the down side seems to be the direction that may be the next move. The Stochastic Oscillator remains in its overbought zone and has not quite dropped below its trigger yet. Another day should do it but how knows? I’ll still go with the down side.

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