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.



11 August 2009

Merv's Daily Commentary /11 Aug 2009


After The Close, 11 Aug 2009

Merv’s Daily Uranium Index
Market Data

Open: 171.92
High: 174.93
Low: 165.98
Close: 169.43
Volume: 4530

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

Uranium takes another $0.50 loss this week and it doesn’t do the stocks any good. The 180 barrier is holding up pretty good, darn it, and the Index looks like it wants to negate that FAN principle bull confirmation by entering back into the FAN. It closed inside the third and second FAN trend lines. Now, if the full day’s trading moves into the FAN we will definitely have a bull confirmation negated. For not it is a close call and I’ll wait another day before determining its validity when part of the trading is still outside of the FAN.

The Merv’s Daily Uranium Index closed another day on the down side with a 2.38 point loss or 1.38%. There were 16 winners, 28 losers and 6 that still don’t know where to go. As for those five largest stocks, they were all losers today. Cameco lost 2.7%, First Uranium lost 2.5%, Paladin lost 2.5%, Uranium One lost 0.4% and USEC lost 3.1%. The best winner of the day was Purepoint Uranium with a gain of 23.1% while the loser on the day was Powertech Uranium with a loss of 14.6%.

The intermediate term went bearish yesterday and nothing has changed in the indicators to change the rating. The Daily Index remains below its negative sloping moving average line and the momentum indicator remains slightly in its positive zone but heading lower. It is below its negative trigger line. The volume indicator has dropped some more below its negative trigger line. All in all, the rating remains BEARISH.

On the short term everything has collapsed. The Index is now below its moving average line and the line slope is once more to the down side. The momentum indicator has now dropped below its neutral line into the negative zone. It is also below its negative trigger line. As for the daily volume action, it continues low but that’s no great help. The short term has now reverted back to the BEARISH camp.

A sharp reader a few days back commented that although things were long up per the indicators he thought it was better to just let the 15 DMAw cross the 65 DMAw before getting all excited. Well, right he was, so far. The 15 DMAw has not yet crossed above the 65 DMAw and this technique did not give a bullish signal. So many techniques, so little time to concentrate on them all. BUT this 15 DMAw crossing the 65 DMAw is a fairly good technique.
With the Stochastic Oscillator just moving into its negative zone and the daily activity heading lower I should go to the down side as the direction of least resistance. Hell, I think I will.

3 comments:

Anonymous said...

Thanks for the "atta boy" Merv, (I was the sharp reader), but hey its your tools I'm following, so no real credit due.

Anyway I am a long term U loser, to this point, and have not reacted to the movements too much, in the last 90 days or so.

I am a bit disappointed that we haven't crossed, but I am also thinking you are right, in that the longer we hang around this level, the more powerful the upmove should be.

It looks like we have buyer exhaustion and maybe near seller exhaustion again occuring at about the same time, just looking at the volume, and very small down movements.

Still hanging in there on that 300 call! Keep us posted and thank you very much for all the insight you provide us.

It is very much appreciated.

Your fan,

Anonymous!

turbotrader said...

Only new to the World of blogging, but here's one I've put together over this recent Bearish period with the Uranium Sector.

Blog consists of Approximately 100 Australian ASX listed Uranium Plays, that are currently available to Trade "Down Under".
(Simply Click logo's to access Company web site)

I hope this Blog comes in handy for you're self & fellow "Merv" followers.

http://australianuraniumquicksearch.blogspot.com/

Merv said...

Turbotrader,

Send me an email at mervburak@gmail.com and let's talk.