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.

14 October 2009

Merv's Daily Commentary 14 Oct 2009

After The Close, 14 Oct 2009

Merv’s Daily Uranium Index
Market Data

Open: 181.15
High: 184.45
Low: 176.92
Close: 179.81
Volume: 7247

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

With uranium up $2.50 this week one can imagine the stocks making a big move. It started that way first thing in the morning but somewhere along the way the stocks topped out and the Daily Index ended the day lower than where it started. Is this a one day reversal day? We’ll see tomorrow. The Index closed just above the resistance line. Depending upon how one draws the line it could be just below the line, it’s that close.

Ask and thou shall receive. Silence is golden but the squeaky wheel gets the grease. Etc., Etc., Etc.

I try to show the Stochastic Oscillator at least once during the week. I don’t always make it but I try (when I can remember to do so). I guess at this point in the Index, when the SO looks like its telegraphing a p[ossible reversal of fortunes I should show it more often.

The Merv’s Daily Uranium Index closed higher by 1.00 point or 0.56%. There were 26 winners, 15 losers and 9 forgetful stocks. The five largest stocks by market value were mixed. Cameco lost 0.8%, First Uranium lost 1.8%, Paladin gained 2.2%, Uranium One gained 2.0% and Uranium Participation gained 1.9%. I’m in the process of upgrading the component list and should be finished for the week-end review. It looks like the top five will change again. The best daily performer was Uranium Resources with a gain of 14.0% while the worst daily performer was Bayswater Uranium with a loss of 19.4%.

With the Index closing on the up side nothing has changed yet in the indicators or ratings, except for them getting a little stronger. So, I’ll dispense with the routine (you can check the routine on the week-end, it has not changed). Both the short and intermediate term remain BULLISH.

It’s the immediate direction of least resistance that is the interesting period. As you can see, the Stochastic Oscillator is not conforming to the actions of the Index. It continues to move lower, below its overbought line and below its negative trigger line. Suggestions are that a topping activity may be going on internally within the Index and there is weakness although that is not easily apparent from the Index action. I would be inclined to hold off on any upside action unless the Index takes another sharp upward move. The odds are for the downside, however.


Anonymous said...

"the squeaky wheel gets the grease"....its also the first one to be replaced! (not intended for anyone reading)

Anonymous said...

Thanks for the SO Merv, and as always the analysis.