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.
Another up day, this time it’s getting better and better looking, except for that darn volume today. When we have a decent up day and the volume of trading diminished significantly, one must then start to suspect the upside move. The past three days of upside Index moves were on volume that is significantly less than the volume on the previous three days of downside Index action. This upside move needs more verification before one can get too enthused.
The Merv’s Daily Uranium Index closed higher by 3.93 points or 2.47%. There were 34 winners, 10 losers and 6 going nowhere. From this information it was a good day, except as mentioned, that volume. Of those five largest stocks by market value, Cameco gained 2.3%, Extract gained 1.6%, Paladin gained 2.5%, Uranium One lost 0.8% and USEC gained 7.6%. The best winner of the day was Continental Precious with a gain of 14.3% while the loser of the day was JNR Resources with a loss of 9.4%. Market Vectors Nuclear Energy ETF gained 1.1%.
Well, some things are starting to change. The Daily Index remains below its intermediate term moving average line and the line remains pointing downward. The momentum indicator, however, has crossed above its trigger line and the trigger has turned upward but still the indicator remains in its negative zone. The volume indicator, although starting to move upwards, is still below its negative sloping trigger line. The intermediate term rating remains BEARISH but things are starting to improve. The short term moving average line remains below the intermediate term line for confirmation of the continuing bear.
On the short term the Daily Index has moved above its moving average line but although the line is in a turning process it is still slightly negative today. The momentum indicator remains in its negative zone although the indicator is moving higher fast and is above its negative trigger line. The suspect negative action of the daily volume action has been mentioned above. The short term rating is improving but only to the + NEUTRAL level today. The very short term moving average remains below the short term average although it is moving upwards and could cross the short term average in another day or two.
For the immediate direction of least resistance, that should now be considered as upwards. The Index closed above a very short term resistance point and is above its positive moving average line. The Stochastic Oscillator is moving upwards very rapidly and is inside its positive zone but not yet into the overbought level.