After The Close, 24 Aug 2009
Merv’s Daily Uranium Index
Market Data
Open: 173.25
High: 175.20
Low: 168.27
Close: 170.06
Volume: 3534
Note that the volume is an average volume of round lot sales for the 5 0 component stocks. For total volume, multiply by 5000.
I don’t like the looks of today’s action in the Daily Index. The Index started the day nicely on the up side and continued higher but somewhere along the way it reversed direction and ended the day on the down side. I would much rather have seen the action the other way around. Still the action is tightly set in a lateral direction, with ups and downs along the way. One would be brave to place any great faith that the Index will end up going in one or the other direction. One should just stay cool, watch and wait for the Index to tell us which way the next major direction is to be. The basic indicators that I follow daily will tell us where the Index stands on a particular day. A technicians creed is that an established trend stays in motion until reversal of trend is verified. Unfortunately, with the rather tight lateral drift going on we are inclined to get whip-sawed until a definite new trend comes along.
The Merv’s Daily Uranium Index closed lower by 1.85 points or 1.07%. There were only 10 winners, 28 losers and a whole bunch of confused stocks (12) that don’t know where to go. Even those five largest stocks were mixed on the day. Cameco lost 0.3%, First Uranium lost 0.4%, Paladin gained 3.7%, Uranium One gained 0.8% and Uranium Participation lost 2.0%. The best performer on the day was JNR Resources which could only muster up a 4.8% gain while the loser of the day was Western Uranium with a loss of 9.9%.
The basic Index is moving in a lateral direction with ups and downs which keep crossing the intermediate term moving average line, a major component in determining trend. Until the Index makes a decisive move I am going to just rate the intermediate term as NEUTRAL.
The short term has the same problem as the intermediate term. Here too I am going to just stick with a NEUTRAL rating until a more decisive move is established. This could be tomorrow or it could be weeks, but it’s not of any benefit changing the rating almost daily just for a minor change in Index direction.
Due to the reversal of activity during the day it looks like the immediate direction of least resistance is to the down side. Let’s see what happens tomorrow.
Merv’s Daily Uranium Index
Market Data
Open: 173.25
High: 175.20
Low: 168.27
Close: 170.06
Volume: 3534
Note that the volume is an average volume of round lot sales for the 5 0 component stocks. For total volume, multiply by 5000.
I don’t like the looks of today’s action in the Daily Index. The Index started the day nicely on the up side and continued higher but somewhere along the way it reversed direction and ended the day on the down side. I would much rather have seen the action the other way around. Still the action is tightly set in a lateral direction, with ups and downs along the way. One would be brave to place any great faith that the Index will end up going in one or the other direction. One should just stay cool, watch and wait for the Index to tell us which way the next major direction is to be. The basic indicators that I follow daily will tell us where the Index stands on a particular day. A technicians creed is that an established trend stays in motion until reversal of trend is verified. Unfortunately, with the rather tight lateral drift going on we are inclined to get whip-sawed until a definite new trend comes along.
The Merv’s Daily Uranium Index closed lower by 1.85 points or 1.07%. There were only 10 winners, 28 losers and a whole bunch of confused stocks (12) that don’t know where to go. Even those five largest stocks were mixed on the day. Cameco lost 0.3%, First Uranium lost 0.4%, Paladin gained 3.7%, Uranium One gained 0.8% and Uranium Participation lost 2.0%. The best performer on the day was JNR Resources which could only muster up a 4.8% gain while the loser of the day was Western Uranium with a loss of 9.9%.
The basic Index is moving in a lateral direction with ups and downs which keep crossing the intermediate term moving average line, a major component in determining trend. Until the Index makes a decisive move I am going to just rate the intermediate term as NEUTRAL.
The short term has the same problem as the intermediate term. Here too I am going to just stick with a NEUTRAL rating until a more decisive move is established. This could be tomorrow or it could be weeks, but it’s not of any benefit changing the rating almost daily just for a minor change in Index direction.
Due to the reversal of activity during the day it looks like the immediate direction of least resistance is to the down side. Let’s see what happens tomorrow.
1 comment:
Merv, your uranium blog is the best! Thanks for educating us all!
The action in your index since July looks (to me) like a pennant formation when you add a line at the bottoms. This would suggest that a resolution to the current lateral trend is approaching.
If so, would an upside resolution be more likely than down given that the larger uptrend is still intact?
Or am I just overly optimistic??
Regards,
Wayne
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