Merv's Daily Commentary 23 Dec 2009

After The Close, 23 Dec 2009

Merv’s Daily Uranium Index
Market Data

Open: 176.74
High: 181.52
Low: 175.08
Close: 180.25
Volume: 3122

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

It’s been a few days since last I posted a commentary. Nothing much had happened during that time. Finally, today we had some interesting activity but without the volume action. Most speculators are probably on their Christmas break and not in the market. Things will most likely be slow until after the New Year’s activities. It need not be said `that we are still in the box and above that up trend line shown on the chart. Just as interesting as the box is the up trending channel. So many trend lines, boxes and channels and yet sio little real activity. I guess it’s now on to the New Year.

The Merv’s Daily Uranium Index closed the day on the up side by 3.59 points or 2.03%. There were 36 winners, 7 losers and 7 going nowhere. Of the five largest, none were losers. Cameco gained 1.8%, First Uranium gained 1.4%, Paladin gained 0.5%, Uranium One went nowhere and Uranium Participation gained 0.8%. The best winner of the day was Continental Precious with a gain of 20.6% while the loser was Forum Uranium with a loss of only 3.9%. Market Vectors Nuclear Energy ETF lost 0.1%.

The intermediate term has been having ups and downs this week. The Index closed above its moving average on Monday, below the moving average on Tuesday and once more up above its moving average today. The moving average turned slightly upwards with today’s move. As for the momentum indicator, it has remained in its `positive zone throughout. Today it is above its trigger line and the trigger line has turned upward. As for the volume indicator, it has remained below its trigger line most of the past several days. The trigger line has, however, remains pointing upwards throughout. On the intermediate term the rating today is BULLISH.

The short term activity has once more turned positive after a few days of being negative. The Daily Index closed above its short term moving average line and the line has turned upward. The momentum indicator is once more in its positive zone above a positive trigger line. The daily volume activity is pretty low but this is not unusual during this holiday season. On the short tern the rating is BULLISH.

As for the immediate direction of least resistance, as could be expected after today’s action the Stochastic Oscillator is once more moving upwards and has crossed into its positive zone. However, I would expect the activity to calm down quite a bit with the holidays so close so I will stick with the lateral directuion as the most probable in the immediate future.

Hope everyone has a very Merry Christmas and a prosperous New Year. I should post a few times over the next week or so but it’s the holidays and who knows when the next post will be.