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.

23 February 2010

Merv's Daily Commentary 23 Feb 2010

After The Close, 23 Feb 2010

Merv’s Daily Uranium Index
Market Data

Open: 173.96
High: 176.21
Low: 169.17
Close: 171.73
Volume: 3903

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

Uranium dropped another $0.25 this week. It may not seem like much but is a negative and places the price at a lower low versus its previous major low a few months back. That may be driving the stock prices but I don’t really care what’s driving the prices, I just go with the flow. The prices move in the direction where we have more buyers than sellers or visa versa. The speculators that can drive prices usually know more about what’s REALLY happening than I and I take their guidance. However, they are prone to sudden changes of sentiment and one must be on guard for these changes.

The Merv’s Daily Uranium Index closed lower by 2.38 points or 1.37%. There were 14 winners, 24 losers and a whole lot of lazy stocks (12) just sitting there. The five largest stocks were generally negative but not all together. Cameco lost 2.6%, First Uranium lost 0.8%, Paladin lost 2.2%, Uranium One is just sitting doing nothing and Uranium Participation gained a whole 0.2%. The best winner was Terra Ventures with a gain of 13.1% while the worst loser was Forum Uranium with a loss of 13.0%. Market Vectors Nuclear Energy ETF lost 1.5%.

The indicators for the intermediate term remain negative. The Index remains below its negative sloping moving average line. The momentum indicator remains in its negative zone although still above its positive trigger line. The volume indicator is back in the dumper below its negative trigger line. All in all, the intermediate term rating remains BEARISH.

On the short term where changes usually occur first, a few changes are noted but nothing really that critical yet. We remain in that short term up trending channel and we remain below the resistance level shown at about 177. One a plus while the other is a minus. As for the indicators, the Index remains above its positive moving average line. The momentum indicator has crossed into its negative zone and below its trigger line although the trigger remains positive. The daily volume activity remains low as one expects during a negative day. Although we are getting early signs of a changing short term for now the rating still remains BULLISH.

As for the immediate direction of least resistance, that does look like the down side. The Index has moved below its very short term moving average line and the Stochastic Oscillator has now most definitely started a downward trend below its overbought line and below its trigger line.

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