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.

29 October 2009

Merv's Daily Commentary 29 Oct 2009

After The Close, 29 Oct 2009

Merv’s Daily Uranium Index
Market Data

Open: 169.36
High: 175.74
Low: 168.66
Close: 173.44
Volume: 5104

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

Well, it’s a start. We should see at least a few days of encouraging market, after that it depends upon what these next few days look like. With the full day’s activity in the Index taking place within the upper and lower confines of yesterday’s trading range we might expect another lateral day but the activity does suggest a rally, at the least.

The Merv’s Daily Uranium Index closed higher by 4.71 points or 2.79%. There were 37 winners, 2 losers and 11 totally confused. All of the top five stocks by market value were winners on the day. Cameco gained 2.0%, First Uranium gained 6.9%, Paladin gained 1.9%, Uranium One gained 2.7% and Uranium Participation gained 0.7%. The best winner on the day was Uranium Energy with a gain of 12.3% while the biggest loser, of the two losers, was JNR Resources with a loss of 6.7%. Market Vectors Nuclear Energy ETF gained 1.9%.

Today’s action took the Index above the long term moving average line upgrading the long term Daily Index rating to a + NEUTRAL rating.

As for the intermediate term, The day’s action was good but was just shy of changing anything. The Index remains below its negative sloping moving average line. The momentum indicator did close just inside its positive zone but remains below its negative trigger line. The volume indicator did close just a hair above its barely positive trigger line but this did not affect the final rating. The intermediate term rating remains BEARISH for at least another day.

On the short term nothing has changed although the action today has started an improvement in the indicators. The Index remains below its negative moving average line and the momentum indicator remains in its negative zone below its negative trigger line. The daily volume action is still not impressive being lower than yesterday’s downside Index volume action. It may take a few days of positive activity for the speculators to get back in the game and increase this volume activity. For now, the short term remains BEARISH.

The Stochastic Oscillator has turned upwards and has crossed above its trigger line although it is still in its oversold zone. One usually waits for the SO to cross above the oversold line before thinking a rally is on but I’ll jump the gun ago go with a rally in progress now. It might actually be a day or two of lateral action but all the indications are for the trend now to move higher.

1 comment:

Anonymous said...

Boy if we could just get a little volitility huh? :).

For me the best way to deal with this is to simply recognize the higher lows that are continuing.

I am hopeful that on one of the rallies we will actually break through the 195 strong resistance.

Maybe this will be the one, with rising spot prices and potential short term supply bottleneck due to Olympic Dam problems.

Still like the intermediate to long term.

Thanks for the TA. Lets hope!