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.

31 August 2009

Merv's Daily Commentary 31 Aug 2009

After The Close, 31 Aug 2009

Merv’s Daily Uranium Index
Market Data

Open: 163.19
High: 165.79
Low: 156.88
Close: 160.81
Volume: 4309

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

Down and down it goes, where it stops nobody knows. Today was a serious day for the Daily Index. It moved back into that FAN PRINCIPLE area between the second and third FANs nullifying its previous bull trend confirmation. It also moved far enough away from that up trend line shown on the week-end chart to state that the up trend has been decisively broken. The next reasonable support can be seen in the 151 level. This is from the activity in March/April and the previous low in July. After that I’ll have to take a better look at the chart.

The short and intermediate term indicators have gotten more negative but that doesn’t change their already BEARISH rating. It’s the long term that is getting hit. The action today has closed below the long term moving average line but the line is still sloping gently upwards. Along with a negative momentum indicator which is below its negative trigger line the long term, per the Daily Index, is now also BEARISH.

There will be huge profits to be made somewhere down the road. When the timing is right is unclear at this time but the time will come, unless the world stops using its nuclear plants. In the mean time frustration reigns.


Anonymous said...

Merv I am wondering why the top fan blade downtrend line isn't measuring the top 5 days earlier than drawn? Doing so would indicate that we bounced off of the fan blade.

Don't know how much it matters, especially considering that the 15 day crossed so decisively below the trendline, but issues such as these in charting are things that I struggle with.

Thank you.

Merv said...

My FAN lines are approximately equal spaced but rarely exactly. I can only confirm a new FAN trend line AFTER the top has been seen and the action takes a downward turn. A trend line is drawn to enclose all of the top action. AFTER THE FACT one can possibly see many places where one might have done things differently BUT at the time one must use the criteria that one has.

Drawing a trend line as you suggested MAY look good BUT what about tomorrow. We do not know where the Index will be and it could just as easily break below that line in the next days. The bull negation would then come days later than before. One picks one's criteria and lives with it.

Anonymous said...

Merv I sure appreciate the explanation and the access you give us to your thought processes.

I learned something valuable in your explanation, which is that you have to honor the chart as you see it, when you draw it.

Otherwise, you would just end up constantly revising your chart to support your bias, which happens to be what I have done too much of.

Bottom line the lesson is that its and art, science AND a discipline. Re-drawing charts removes the discipline, in many cases.

Thanks for your patience.