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.

08 November 2010

Merv's Daily Commentary 08 Nov 2010

After The Close, 08 Nov 2010

Merv’s Daily Uranium Index
Market Data

Open: 211.86
High: 226.77
Low: 209.99
Close: 224.84
Volume: 20741

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

I thought I’d take Monday off but boy, what a market. 8 stocks with daily gains over 20%, 24 out of 50 stocks with double digit gains. Now THAT’S a bull market.

The Merv’s Daily Uranium Index closed the day with a gain of 16.13 points or 7.73%. Now that’s like the good old days. There were 45 daily winners, only 3 losers and 2 sleepers. Cameco gained 8.5%, Extract gained 1.7%, Fronteer gained 9.7%, Paladin gained 4.1% and Uranium One gained 2.0%. Note that these five largest stocks in the Index had no double digit winners among them. The best winner of the day was Khan Resources with a gain of 35.8% while the loser of those three stocks was Ucore Uranium with a loss of 4.1%. Market Vectors Nuclear Energy ETF gained 3.9%. The speculative stocks had a very, very good day.

Without going into details, the week end commentary should suffice, all time periods ratings remain BULLISH.

One thing of note: The Index can now be seen as being in a blow-off stage. The breaking of that third FAN trend line will tell us when this move is over. Stay tuned and go with the winners.


Anonymous said...

Thanks to your good works.

Since a new uranium fund has just been traded on NYSE, maybe it would be better to use URA than NLR to represent uranium stocks.

Happy trading.


Anonymous said...

Hi Merv,

A very nice day for the U308 sector indeed! It has been quite a wait for this market to finally break out...

It would be interesting to see the weekly chart from 2005-2006 compared to the current early stage run-up.

Got A Watch said...

Hi Merv, love the Blog, and thanks as always for your analysis.

"the third FAN line" looks to be about 7.5% below current price level to my eyes, so is that where you would set a stop?

Or leave a % trailing stop and let them ride.

I am curious, as my gut is telling me to sell, it's been a great ride. Never argue with your lower brain.

Merv said...

Will respond shortly after super.

Merv said...

The URA is a very new ETF. Let's give it some time. I would not be able to include it in my Index, however, for at least a year as that is one criteria for inclusion into the Index. Some of the stocks are also traded exclusively on foreign exchanges (other than North America. That's okay but I do not get foreign data at the present time.

My Weekly chart was started in Jan of 2003 and the biggest gains, % wise, was in 2003. Will show the weekly chart all the way back next week-end.

I would not want to guess when the Index will break below the third FAN trend line. Just take it one day at a time and wait for the Index to close below the line.