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.
How is THAT for a wake-up call, at least for the general market? As I hear it the plunge in the DOW and other market Indices was more the result of a stupid finger than anything in reality. Some trader hitting the B button rather than the M button (like in Billion and Million). You get one stock in a supposed free fall and all hell breaks lose with these “quality” long term investors at the exchanges. We now know there is no such thing as “long term investing” with the industry professionals, that’s only for the masses.
The market plunge and partial recovery occurred over only a 5 to 10 minute period. This also affected the Market Vectors Nuclear Energy ETF as it plunged during that time due to the component stocks in its fund. This affected the Daily Index with a long down tail to the daily low. This brief period of activity may be seen at a later time to be in error and things corrected but in the mean time we do have that tail on the low side but we should remember why we have it and not panic because of it today. Tomorrow should be interesting.
The Merv’s Daily Uranium Index closed lower by 3.88 points or 2.41%. There were 10 winners, 34 losers and 6 stocks paralyzed. Cameco lost 1.0%, Extract was paralyzed, Paladin lost 2.6%, Uranium One actually gained 0.4% and USEC lost 10.2%. The best winner of the day was 12.0% while the loser of the day was Bannerman with a loss of 15.1%. Market Vectors Nuclear Energy ETF lost 3.2% (earlier in the day it was down about 12%).
The Daily Index is bouncing off its year and a half bottom support level while the intermediate term momentum indicator is at a level it has not been since Dec of 2008. All remains negative so both the intermediate and short term ratings remain BEARISH.
As for the immediate direction of least resistance, my guesses have been so good lately that sooner or later I’ll get it right. I’m sticking with the lateral direction again. The Stochastic Oscillator has not really plunged with the Index and in fact has moved slightly higher today.