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.

04 May 2010

Merv's Daily Commentary 04 May 2010

After The Close, 04 May 2010

Merv’s Daily Uranium Index
Market Data

Open: 166.21
High: 167.41
Low: 161.03
Close: 163.77
Volume: 3755

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

Maybe I’d better stop complaining about the minor dribble dribble in the Daily Index price. Today it was more than a minor dribble but it really could have been worse. With the major market Indices in Canada and the U.S. dropping more than 2% today it’s lucky the Daily Index also dropped the same amount. With the component stocks in the Index one would imagine a multiplier effect on the down side (as well as the up side when we get one). The Index is now toying with that Feb low. We need to watch how it acts over the next few days to see if the Fen low will hold or be broken.

The Merv’s Daily Uranium Index closed lower by 3.41 points or 2.04%. There were only 7 daily winners, 37 losers and 6 stocks hiding under the covers. Cameco gained, yes that’s gained 1.0%, Extract lost 6.5%, Paladin lost 1.9%, Uranium One lost 3.5% and USEC lost 0.8%. The best winner was Pele Mountain with a gain of 12.0% while the loser of the day was Xemplar Energy with a loss of 13.8%. Market Vectors Nuclear Energy ETF lost 3.6%.

As mentioned above, the Daily Index was toying with the Feb low today. Its low for the day was just above the Feb low as was the close on the day. I guess it goes without saying that the Index closed below its intermediate term moving average line and the line slope is to the down side. The momentum indicator is right at the Feb low maybe suggesting a halt to this down trend. The momentum is in its negative zone below its negative trigger line. The volume indicator is also toying with its Feb low and is below its negative trigger line. On the intermediate term the rating remains BEARISH.

On the short term all is likewise negative. The Index remains below its negative sloping moving average line while the momentum indicator remains in its negative zone below its negative trigger line. The momentum indicator has also entered its overbought zone which is often a precursor to a halt in a trend and reversal. We’ll see how quickly this happens. On the short term the rating remains BEARISH.

As for the immediate direction of least resistance, the Stochastic Oscillator has not followed the other indicators on the down side today and may be preparing for a reversal. I’ll stick with my lateral direction although that didn’t work today.

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