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.



29 March 2010

Merv's Daily Commentary 29 Mar 2010


After The Close, 29 Mar 2010

Merv’s Daily Uranium Index
Market Data

Open: 170.91
High: 174.34
Low: 169.52
Close: 172.73
Volume: 3405

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

The roller coaster continues, when it will end is anyone’s guess. Today, the Daily Index closed higher but is still within the short term box. The indicators are changing with each roller coaster move and this gets frustrating. One day we have positive indicators the next day negative. During lateral trends this happens and is one of the things we must live with, especially when we stay simple.

The Merv’s Daily Uranium Index closed higher by 3.15 points or 1.86%. There were 28 winners, 13 losers and 9 stocks stuck on stupid. Cameco gained 2.0%, First Uranium gained 10.2%, Paladin gained 4.2%, Uranium One gained 2.7% and Uranium Participation lost 0.2%. The best winner of the day was First Uranium with that 10.2% gain while the worst performer today was NWT Uranium with 5.1% loss. Market Vectors Nuclear Energy ETF gained 2.1$.

On the intermediate term the Daily Index just barely peaked its head above its moving average line although the line is still slightly negative. The momentum indicator is still in its negative zone but has turned upward and is now above its positive trigger line. The volume indicator is still below its negative trigger line. All in all the intermediate term rating has moved up to a + NEUTRAL rating, one level short of a full bull.

On the short term things are even better. The Index closed above its short term moving average line and the line has turned upwards. The momentum indicator has moved into its positive zone and is above its positive trigger line. Unfortunately, the daily volume action is still pretty low and not going with the positive trend. The short term rating is now BULLISH although the very short term moving average line has not yet crossed above the short term line for confirmation.

As for the immediate direction of least resistance, that would be to the up side although the Stochastic Oscillator is still in its negative zone. It is, however, heading upward and in the right direction.

2 comments:

Ryan said...

Merv,

Just wanted to give a couple suggestions for the index.

If there is enough history, it may be worth considering an addition of Extract Resources as one of the more recent top performing uranium juniors.

I would suggest removing Quest Uranium as this company appears to have changed its focus to rare earth exploration.

Additionally, it may be worth revisiting the top 5 companies list.
It looks to me that First Uranium has been overtaken by Extract Resources, Denison Mines and USEC in terms of market capitalization.

Merv said...

Ryan,

Excellent point. It has been too long since I last reviewed the component stocks. I am presently in the process of a total review of my gold and silver stocks for my Precious Metals Central subscribers (paying customers) (www.preciousmetalcentral.com). As sooin as I'm finished there I will do the same for the uranium stocks. I'll try for this week-end but more likely it will be sometime next week when I can finish that review.