BASIC NOTES

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.



01 December 2009

Merv's Daily Commentary 01 Dec 2009


After The Close, 01 Dec 2009

Merv’s Daily Uranium Index
Market Data

Open: 175.25
High: 180.43
Low: 173.45
Close: 178.68
Volume: 5496

Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.

DANGER, DANGER

You may have seen in the comments section in the past couple of days some unscrupulous individual placed a comment which was nothing other than an attempt to get you to subscribe to something or other using a Pay Pal account.

It seems he is offering money in exchange for your Pay Pal information.

In my view this is nothing other than a SCAM.

DO NOT RESPOND

I’m not sure how to delete this SCAM so please DO NOT RESPOND to it.

I DO NOT approve of any ads or propaganda on this site (other than my own, of course). Should you see any such promotions, ads, propaganda Etc. anywhere on this site you can be sure they were not approved by me and were placed there without my knowledge.

Back to the markets

Today was not a bad day for uranium stocks. Most were on the climb although very few advanced by more than a few %. We are still within that major box between 151 and 197 and also within a minor box between 170 and 181 established over the past month. Until the activity gets out of these boxes nothing special is seen from the technical side. Of course this could change with surprise trading activity. Uranium itself was up $2.50 yesterday so this might be helping set a new trend.

The Merv’s Daily Uranium Index closed on the up side by 5.22 points or 3.01%. There were 33 winners, 7 losers but still 10 totally confused. As for the 5 largest stocks by market value, all were up on the day. Cameco gained 3.6%, First Uranium gained 0.8%, Paladin gained 2.8%, Uranium One gained 4.3% and Uranium Participation gained 4.7%. The best winner on the day was Alberta Star with a gain of 23.5% while the loser on the day was Energy Fuels with a loss of only 6.0%. Market Vectors Nuclear Energy ETF gained 2.2%.

Today’s action has once more placed the indicators in their positive zones. The daily Index is above its intermediate term positive moving average line. The momentum indicator is in its positive zone above a positive trigger line. The volume indicator is moving higher above its positive trigger line. And all is once more well with the world. The intermediate term rating can only be BULLISH.

ON the short term the situation is the same. The Index is above its positive moving average line. The momentum indicator is in its positive zone above its positive trigger line. Only the daily volume activity could stand a little more upside volume. The short term rating, however, is not affected by this neutral volume and is BULLISH.

As for the immediate direction of least resistance, that must b e considered to be to the up side. The Stochastic Oscillator has moved sharply upwards and has closed above its neutral line and above its positive trigger line. The daily close is also encouraging being in the upper part of the daily trading range.

3 comments:

Anonymous said...

Hi Merv,

It looks like each of the break lows in early Sept, Oct, Nov and Dec are higher each time. I would think that this is a good sign, at least technically. (The lows going forward are not breaking through the previous low)

On another note, the other metals markets are on a full bull uptrend!

Anonymous said...

Thanks for analysis as always.
Thanks too for being anti-scam spam!

Steven said...

In my opinion what the U.S. government (and other govt's that have followed in their footsteps) has continued to do to try to benefit the economy is very misguided. They have wasted trillions of dollars bailing out creditors and shareholders of failed institutions with broken business models rather than addressing the structural flaws in the system of too much debt. And this is going to lead to massive problems down the road with regard to our currency and interest rates, in my opinion. And I feel that the gold price breaking out to a new high is a strong indication of the reduction in faith and confidence that people have in governments and their fiat currencies. I recently found several good articles at http://www.goldalert.com/ that discuss the Federal Reserve's easy monetary policies in order to try to prevent any sort of deflation from occurring and to try to reflate assets prices. One I found particularly interesting is called "Gold Price Hits Record as Gold Fever Grips Wall Street " I think that these articles are very useful for any investor to read because they help to explain the investment implications for the dollar, the gold price, and gold mining companies who I believe will continue to benefit from central banks' inflationary programs.