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.

28 October 2009

Merv's Daily Commentary 28 Oct 2009

After The Close, 28 Oct 2009

Merv’s Daily Uranium Index
Market Data

Open: 174.40
High: 175.97
Low: 166.76
Close: 168.73
Volume: 7254

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

Ouch, that hurts. The Daily Index took another swipe to the down side and the Stochastic Oscillator moved even further down inside its oversold zone. I had started the Daily Index 0n 01 Sept 2006 and this is now the lowest point the SO has been during all this time. Yesterday the SO was at 14.57 which was just above its previous lowest reading of 13.00. Today, it is at 11.42. Of some encouragement is the fact that we now have 6 days in a row if downside action, four of significant value, so we are due for a rebound. The SO itself is leveling off today. Even though the Index action was quite severe the SO shows signs of a start to turning around. I guess we’ll just have to keep watching and hoping.

The Merv’s Daily Uranium Index closed lower by 7.20 points or 4.09%. There were only 6 winners, 42 losers and 2 confused. It was, without a doubt, a lousy day. Of those five largest stocks, Cameco lost 4.3%, First Uranium lost 1.1%, Paladin lost 4.6%, Uranium One gained 1.0% and Uranium Participation lost 3.3%. Market Vectors Nuclear Energy ETF lost 3.2%. The best performer on the day was Bayswater Uranium with a whopping 4.4% gain while the worst performer was RPT Uranium with a loss of 11.8%.

Today’s plunge really wrecked the ratings. The long term rating for the Daily Index just took a tumble. The Index closed below the moving average line although the line is still very slightly positive. The momentum indicator is in its negative zone below its negative trigger line. The volume indicator is sitting just a hair above a positive trigger line. The rating for the long term Daily Index is now BEARISH. I wouldn’t know the rating for the Weekly Index before the week-end.

The Index has smashed through the intermediate term moving average line closing well below it. The line has also just turned very slightly negative. The momentum indicator has moved into its negative zone below its negative trigger line. The volume indicator has now moved below its trigger line and the trigger has turned downward. All indicators tell us the intermediate term in now BEARISH.

I guess it goes without saying that all the short term indicators are negative also, and getting more so. I am concerned with today’s volume action. The volume increased almost by 50% from yesterday. One day does not a trend make but this is something to watch. The short term rating remains BEARISH.

Once more I will go with the up side as the immediate direction of least resistance. The SO has started to turn around despite the severity of today’s Index decline. It is also deep inside its oversold zone and a rebound should be expected from these levels. Finger’s crossed.

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