Merv's Daily Commentary 12 Nov 2009

After The Close, 12 Nov 2009

Merv’s Daily Uranium Index
Market Data

Open: 174.94
High: 178.11
Low: 170.95
Close: 173.58
Volume: 5864

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’m finally back home so the commentaries should be back to normal. Since the week-end nothing much has happened. The Index moved slightly higher on Monday, slightly lower today and in between it moved sideways. We’re back almost where we were on the week-end. The Index continues to move within a box pattern so it’s once more a wait and see which way the wind is blowing.

The Merv’s Daily Uranium Index closed lower today by 2.19 points or 1.25%. There were 14 winners, 26 losers and 10 going nowhere. Cameco was the only winner out of the five largest stocks but the amount was so small it didn’t even register in the %. Cameco gained 0.0%, First Uranium lost 8.2%, Paladin lost 1.5%, Uranium One lost 1.2% and Uranium Participation lost 3.0%. Market Vectors Nuclear Energy ETF lost 2.1%. The best winner of the day was Terra Ventures with a gain of 15.6% while the loser of the day was Powertech with a loss of 11.9%.

The Daily Index has been moving above and below the intermediate term moving average line over the past several days and today finds it below the line. The line is very, very slightly sloping upwards but this should change if we have one more day of negative market. The momentum indicator remains in its positive zone but has once more crossed below its trigger line. The trigger is also sloping downward. The volume indicator is basically moving sideways but has just crossed below its trigger line. The trigger is slightly sloping upwards. Putting it all together I get a – NEUTRAL rating for the intermediate term.

On the short term The Daily Index has once more crossed below its moving average line and the line is sloping downward. The momentum indicator is back in its negative zone below its negative trigger line. The daily volume has remained below its 15 day moving average for three weeks but today it breached that average line just slightly. On the short term all is negative and the rating is BEARISH.

As for the immediate direction of least resistance, everything here is pointing lower. The Stochastic Oscillator is moving lower rapidly and is in its negative zone. The Index is below its very short term moving average line and the line has turned downward. It does look like the direction of least resistance today is to the down side.