Merv's Daily Commentary 13 Sept 2010

After The Close, 13 Sept 2010

Merv’s Daily Uranium Index
Market Data

Open: 166.91
High: 171.11
Low: 165.73
Close: 168.97
Volume: 4376

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

A good day for the uranium stocks. I guess all it needed was a little talking to. The Daily Index is entering a resistance zone from action during the Feb to Apr period but I really don’t see it having much trouble now in getting at least to the area of the upper resistance line on the new channel. We draw them as we see them.

The Merv's Daily Uranium Index closed on the up side today, by 3.19 points or 1.92%. There were 34 winners (the best for quite a while), 9 losers and 7 sleepers. Cameco gained 1.4%, Extract was a sleeper (as it so often is), Fronteer gained 3.2%, Paladin gained 1.7% and Uranium One gained 0.6%. The best winner of the day was Pele Mountain with a gain of 34.6% while we had two identical losers, JNR Resources and Xemplar Energy, each with a loss of 5.26%. Market Vectors Nuclear Energy ETF gained 1.8%.

The Daily Index moving average line has turned to the up side with today’s action and its long term momentum indicator has entered its positive zone and remains above its positive trigger line. That now improves the long term rating to a full BULLISH rating for the long term. The Weekly Index will probably show a similar improvement on the next week-end unless things collapse on us.

Both the intermediate and short term had been bullish so no need to go into them today. They just got more bullish.

As for the immediate direction of least resistance, I guess I’ll pretend I didn’t make that silly prediction on the week-end and go with the up side today.