Merv’s Daily Uranium Index
Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.
Ouch! That hurts. We’re on the verge of breaking below that lower up trending support channel line, although we would still be inside the long term box (not shown). It looks like the Weekly Index break into new recovery highs was a little premature. One should have been on guard as it is usually the quality stocks that start a new bull move. The more speculative stocks start later, after the bull trend has become more established. Once they start they are likely to quickly overtake the quality stocks. The speculative stocks moving first should have been taken with some caution until everything was bullish.
The Merv's Daily Uranium Index closed lower by 6.79 points or 3.70%. There were only 4 winners today. There were 44 losers and only 2 stocks confused. Of the five largest stocks all were on the down side. Cameco lost 2.7%, First Uranium lost 4.8%, Paladin lost 4.0%, Uranium One lost 6.0% and Uranium Participation lost 0.9%. The best winner of those 4 winners was Pele Mountain with a gain of 4.2% while the loser of the day was Continental Precious with a loss of 16.7%. Market Vectors Nuclear Energy ETF lost 3.5%.
The intermediate term fell apart today. The Daily Index closed below its moving average line and the line turned downward. The momentum indicator closed in its negative zone below its negative trigger line. The volume indicator turned lower and has dropped below its trigger line with the line itself turning just slightly downward. The intermediate term rating has been down graded all the way to BEARISH.
The short term continues its previous all negative trend. Index below a negative moving average line. Momentum in the negative zone below a negative trigger line. Daily volume indicator perking up but unfortunately during down days. All in all the short term can only be rated as BEARISH.
With the Stochastic Oscillator taking a sharp down turn and dropping below a two month support level what can I say? It don’t (yes I know, the spell checker says doesn't) look too good. The direction of least resistance has shifted to the down side with a vengeance.