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.

15 September 2010

Merv's Daily Commentary 15 Sept 2010

After The Close, 15 Sept 2010

Merv’s Daily Uranium Index
Market Data

Open: 170.11
High: 172.23
Low: 166.28
Close: 168.69
Volume: 4447

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

Well we did have a basic lateral day. It started on the up side but unfortunately didn’t go very far, turned to the down side but ended the day about in the mid-point of the day’s activity. The volume perked up a little from the volume of the past month and a half (neglecting yesterday’s volume which was due to one stock). With the day’s action and not having any intra-day activity data it’d difficult to say if the action was positive or negative. The Stochastic Oscillator moved in a lateral direction and didn’t give any message today. So, I guess we’ll just have to go with the normal indicators.

The Merv's Daily Uranium Index closed lower by 0.62 points or 0.37%. There were 13 winners, 30 losers and 7 sleepers. Cameco lost 0.4%, Extract gained 5.8%, Fronteer lost 2.6%, Paladin lost 2.2% and Uranium One lost 1.7%. The best winner was Uranium Energy with a gain of 11.8% while the daily loser was Pele Mountain with a loss of 15.8%. Market Vectors Nuclear Energy ETF lost 0.7%.

The intermediate term remains as it has been for the past few days. The Daily Index remains above its positive moving average line and the momentum indicator remains in its positive zone above its positive trigger line. The volume indicator has been moving higher with the continuing positive Index days. For the intermediate term the rating remains BULLISH. The short term moving average line confirms this rating as it is above the intermediate term line.

On the short term things here also remain the same but are starting to show signs of changing. The Index remains above its positive moving average line. The momentum indicator is in its positive zone above its positive trigger line. However, the indicator is also in its overbought zone and with today’s action is starting to move lower. It still needs another day or two to cross below its overbought line but is heading in that direction. The daily volume has perked up even after taking away that one stock yesterday. Perked up but not in an run away mode. On the short term the rating remains BULLISH. The very short term moving average line confirms this rating.

As for the direction of least resistance, I’ll go with the lateral for another day although it is looking like the down side may take over for a short time.


Anonymous said...

Hi Merv. I'm puzzled as to how it is that the price of UUU didn't move an iota given the high volume of shares traded on 14th. Wondering if you have an explanation of how a situation like this occurs. Tks.

Merv said...

There are numerous things that could have taken place for this event. The most likely is a transfer of shares (sales) between two consenting adults who arranged the transfer ahead of time and just had it shown on the exchange as a sale/purchase for legal reasons or for tax reasons. As an example, and I'm only speculating here, you could have a speculator in Russia interested in UUU who may have agreed to buy out the shares of some major owner who wants to get out. This transaction then takes place on the exchange floor at a predetermined agreed upon single price.