for week ending 24 September 2010
Merv’s Daily Uranium Index
Market Data for Friday 24 Sep 2010
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 continued to be a so-so week until Friday. The uranium stocks sort of woke up on Friday although it still was not a great day. We’ll take any good day we get. The Daily Index closed on Friday at a new closing high but not above the previous intra-day high. That is just a minor bit above the Friday close. The Index did close above that week long 170 barrier and if it were not for a mediocre volume action I would get really gung-ho here but the volume is still not what I would like to see on an advance. One very positive note are all of the various momentum indicators. They are all very, very close to multi year high levels even though the Daily or Weekly Indices are still some distance from their year ago highs. The momentum indicators sort of snug up on me and made good moves without me noticing it.
On Friday the Merv’s Daily Uranium Index closed on the up side by 3.30 points or 1.97%. There were 28 winners, 14 losers and 8 stocks still in sleep mode. Cameco gained 3.2%, Extract was in sleep mode, Fronteer lost 1.4%, Paladin lost 0.5% and Uranium One gained 0.6%. The best winner of the day was Quest Rare Metals with a gain of 15.3% while the worst loser was Xemplar Energy with a loss of 11.5%. Market Vectors Nuclear Energy ETF gained 2.0%.
For the full week the Merv’s Weekly Uranium Index gained 158.53 points or 3.02%. Both Indices moved about the same amount this week, give or take a fraction of a %. There were 27 weekly winners, 18 weekly losers and 5 stocks in a deep sleep. Cameco gained 4.7%, Extract gained 0.8%, Fronteer lost 5.9%, Paladin gained 1.1% and Uranium One gained 4.2%. The best winner of the week was Khan with a weekly gain of 28.6% while the worst loser of the week was, we have a tie, Crosshair and NWT Uranium both lost 7.7%. Market Vectors Nuclear Energy ETF gained 1.7% on the week.
Both the Daily and Weekly Uranium Indices are in sync on the long term. Both are above their long term positive sloping moving average lines. The long term momentum indicators for both Indices are now in their positive territory and above positive sloping trigger lines. The Daily Index volume indicator (I do not have volume for the Weekly Index) is once more moving towards new highs and remains above its positive trigger line. All in all, the long term ratings for both Indices are BULLISH.
Looking at the intermediate term indicators, that’s a snap. The Daily Index remains above its positive sloping moving average line and the momentum indicator remains in its positive zone above its positive sloping trigger line. The volume indicator seems to have no trouble keeping above its positive trigger line. The intermediate term rating can only be BULLISH. This is confirmed by the short term moving average line remaining above the intermediate term line.
On the short term things were getting kind of iffy during the week but the action on Friday sort of cleared the air. The Daily Index closed the week above its positive moving average line. The short term momentum is bouncing nicely off its up trend line and is once more entering its overbought zone. How long it will stay there is not known. Once it turns below the overbought line that might signal a reaction or reversal of trend but we’re not there yet. The daily volume is still not all that great. There were a couple of days of high volume a week back but that was it. Anyway, the short term rating remains BULLISH and is confirmed by the very short term moving average line remaining above the short term line.
As for the immediate direction of least resistance, everything presently points to the up side so that’s where I’ll go.