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.

09 December 2009

Merv's Daily Commentary 09 Dec 2009

After The Close, 09 Dec 2009

Merv’s Daily Uranium Index
Market Data

Open: 176.43
High: 179.22
Low: 171.93
Close: 176.70
Volume: 6052

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

I’m not sure how long this nonsense can continue but for now it continues. Today we saw a very small up tick in the Daily Index. It was a small move but with everything concentrated so close it broke above its intermediate term moving average line and the line turned upwards. This affected the rating as shown below. With everything concentrated very close together we can expect changes in the indicators and ratings as the Index moves up and down. I mentioned in the past that technicians like to draw lines on the chart. I had been drawing the up trending support line but today we go a little deeper and draw a parallel resistance line and what looks like a mid-point dash line. What all this means is anyone’s guess but it keeps us technicians busy when nothing much is happening.

The Merv’s Daily Uranium Index closed up by 1.26 points or 0.72%. There were 23 winners, 20 losers and 7 just sitting there doing nothing. As for those largest stocks they were mixed. Cameco gained 0.5%, First Uranium lost 4.7%, Paladin lost 2.8%, Uranium One lost 1.3% and Uranium Participation gained 0.2%. The best winner of the day was Benton with a gain of 8.6% while the loser of the day was Alberta Star with a loss of 14.3%. Market Vectors Nuclear Energy ETF gained 0.3%.

On the intermediate term we no sooner dropped into the bearish zone than the Index bounced back above the moving average line into the positive. It’s hard to see as it is `so close but the moving average line has also turned slightly upwards in the process. The momentum indicator, however, remains in its positive zone but below its negative trigger line. The volume indicator remains above its positive trigger line. The intermediate term rating has once more changed, this time to the BULLISH level.

On the short term things are not quite as tight as on the intermediate term. 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 has perked up a bit but not yet to any great level. On the short term the rating remains BEARISH.

As for the direction of least resistance, I’ll remain with my lateral direction for at least another day. Hopefully tomorrow’s action will be more telling as far as where we are going.

No comments: