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.

24 November 2010

Merv's Daily Commentary 24 Nov 2010

After The Close, 24 Nov 2010

Merv’s Daily Uranium Index
Market Data

Open: 223.93
High: 233.07
Low: 221.90
Close: 230.58
Volume: 14044

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

It’s a good thing I gave myself an out yesterday. I thought that it might be a topping action but went for the lateral for another day until the topping was more evident “or the up trend resumes in a stronger manner”. Hey! I’m getting the hang of this commentary business being able to say both things at once so that I can always look back and say “I told you so” regardless of what the market does. A politician’s first priority is to get re-elected; a commentator’s first priority is never to be wrong. I’m still working on that “never” part but getting closer and closer to it.

It was a good day, almost a great day, for the uranium stocks. As can be expected the speculative stocks moved almost twice as high as did the quality stocks today. The volume improved greatly, the third highest in several months, but not the highest. The Daily Index closed at a new recovery high but with the intermediate term momentum indicator (the one I am most likely to watch) not yet at its previous high level so there is starting to be a minor warning here. The short term momentum has reentered its overbought zone although it too is below its previous high. The aggressive Stochastic Oscillator is in its overbought zone and despite the strong day the SO went into a turning mode, almost to a horizontal direction. All in all, a very good day and a technician would not argue with the prevailing trend in motion. However, the rally may be getting closer to a topping point and purchases here may be near a top, although you would have to look at the stock’s individual chart before deciding.

The Merv’s Daily Uranium Index closed higher by 8.25 points or 3.71% (the average stock rose 6.10%). There were 44 winners, 6 losers and I couldn’t find any stocks hiding or sleeping or just bumming around. I think this is the first time that I can remember where we had no unchanged stocks. Cameco gained 4.4%, Denison gained 14.7%, Extract was one of those few losers with a loss of 2.9%, Paladin gained 3.0% and Uranium One gained 6.9%. The best winner of the day was Ucore Uranium with a gain of 27.9% while the loser of the day was Strateco with a loss of 6.3%. Market Vectors Nuclear Energy ETF gained 4.3%.

With a day like today it’s no use spending a whole lot of time on the details. All time periods remain BULLISH. As for the immediate direction of least resistance, that would be to the up side but I’ll chicken out and stick with the lateral direction.

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