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.



02 May 2010

Merv's Weekly Commentary 02 May 2010


Merv’s Weekly Uranium Review
for week ending 30 April 2010

Merv’s Daily Uranium Index
Market Data for Friday 30 Apr 2010

Open: 168.16
Hugh: 171.56
Low: 165.77
Close: 168.08
Volume: 3795

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

Note that additional charts of the Daily and Weekly Indices were posted earlier and should be viewed during this commentary.

It’s been another week on the down side, although not much down if that’s any consolation. Both the Daily and Weekly Indices seem to be trapped in that lateral channel although the immediate trend seems to be more negative than anything. The Weekly Index is showing more weakness than the Daily Index but this is not surprising as the Daily Index represents the actions of the larger stocks and they are not as volatile as are the low prices ones represented by the Weekly Index. We’ll just have to take it one day at a time and see how it goes from here.

The Merv’s Daily Uranium Index closed on Friday slightly higher by 0.59 points or 0.35%. There were 23 stocks on the up swing, 22 on the down swing and 5 on no swing at all. Cameco gained 1.1% on the day, Extract gained 3.0%, Paladin gained 6.3%, Uranium One lost 3.0% and USEC gained 0.7%. The best daily winner was Xemplar Energy with a gain of 16.0% while the loser of the day was Pele Mountain with a loss of 9.7%. Market Vectors Nuclear Energy ETF lost 0.5%.

For the week as a whole, the Merv’s Weekly Uranium Index closed lower by 73.20 points or 1.38%. there were 19 stocks on the up swing, 28 on the down swing and 3 non swingers. Cameco lost 1.9%, Extract lost 0.7%, Paladin gained 4.2%, Uranium One lost 0.4% and USEC lost 2.0%. The best weekly mover was NWT Uranium with a gain of 13.9% while the worst weekly loser was Pele Mountain with a loss of 12.5%. Market Vectors Nuclear Energy ETF lost 1.9%.

On the long term both the Daily and Weekly Indices are in sync. Both Indices are below their negative moving averages and both momentum indicators are in their negative zone. The volume indicator remains below its negative trigger line although the trend of the volume indicator could be said to be basically lateral. The long term rating of both Indices is BEARISH.

On the intermediate term the Daily Index remains below its negative moving average line. The momentum indicator remains in its negative zone below its negative trigger line. The volume indicator remains below its negative sloping trigger line. All indicators point to a continuing rating of BEARISH. The short term moving average line has dropped below the intermediate term line for confirmation of this rating.

On the short term nothing new here. The Daily Index remains below its short term moving average line and the momentum indicator remains in its negative zone below its negative trigger line. It does look like the momentum indicator wants to turn upwards but it needs another couple of days for the turn (if it comes) to mean anything. The daily volume action remains weak and not helping. The short term rating is therefore BEARISH.

As for the immediate direction of least resistance I’ll go with the lateral as the Index does not seem to be interested in moving higher nor lower.

2 comments:

Chris said...

Hi Merv,

In your studies of Uranium, have you noticed any seasonal time frames that seem to favor Uranium stocks?

Merv said...

I am not a great follower of cycles. I just check the on going daily trading data and take my cue from that.