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.

26 May 2010

Merv's Daily Commentary 26 May 2010

After The Close, 26 May 2010

Merv’s Daily Uranium Index
Market Data

Open: 152.53
High: 156.19
Low: 148.80
Close: 150.36
Volume: 4740

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

It looked like we had hit bottom and a rally was coming but it didn’t last long. The action today started okay but by the end of the day we were back to the down side. The close near the daily low suggests a continuation of the down side into tomorrow, although that does not suggest it will close that way. We are still in a rally or bounce process despite this one down day so let’s keep out hopes high.

The Merv’s Daily Uranium Index closed lower by 0.05 points or 0.04%, almost nothing. There were 22 winners, 18 losers and 10 sleepers. Enough in every category for it to be almost a neutral day. Cameco lost 1.4%, Extract lost 3.8%, Fronteer lost 0.9%, Paladin gained 0.9% and Uranium One lost 0.9%. The best daily winner was Formation Metals with a gain of 14.0% while the loser of the day was 11.7%. Market Vectors Nuclear Energy ETF lost 0.7%.

The Daily Index continues considerably below its negative sloping moving average line. The intermediate term momentum indicator remains in its negative zone below its negative trigger line. The volume indicator continues in its negative trend below its negative trigger line. The intermediate term rating remains BEARISH.

On the short term things are not much better. The Index remains below its negative moving average line. The momentum remains in its negative zone but above its positive trigger line. The momentum indicator is encouraging in that it has provided us with a positive divergence and has now moved above its oversold line. The daily volume action is lower than the past two up days, which is a good sign. Putting it all together the short term is still rated as BEARISH.

As for the immediate direction of least resistance, I don’t think that will continue on the down side so will go back to my favorite lateral direction. The Stochastic Oscillator continues to move higher and is almost in its positive zone for encouragement. This week’s $0.75 drop in uranium price wasn’t encouraging, however, and may nullify the positive vibes from the SO.

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