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.

27 January 2011

Merv's Daily Commentary 27 Jan 2011

After The Close, 27 Jan 2011

Merv’s Daily Uranium Index
Market Data

Open: 255.78
High: 258.13
Low: 248.46
Close: 251.55
Volume: 7192

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

A one day rally, not bad but it would have been nice to have had at least two days. I guess that low volume on the advance was really a good indicator that the speculators were just not quite ready to jump back in yet. Maybe tomorrow. The continuing negative trend in the momentum indicator is no help here. We probably wouldn’t see a real pick up in this indicator until we get a good upside move in the Index.

The Merv’s Daily Uranium Index closed lower by 3.49 points or 1.37%. There were 8 winners, 40 losers and 2 bummers. Cameco lost 1.3%, Denison lost 1.4%, Extract lost 2.1%, Paladin lost 2.8% and Uranium One lost 1.5%. The best winner was Uranium Participation with a gain of 2.7% (WOW!) while the worst loser was Pele Mountain with a loss of 15.5%. Market Vectors Nuclear Energy ETF gained 0.1% while the Global X Uranium Index lost 1.6%.

The intermediate term remains unchanged with a rating of BULLISH.

Once more things have changed on the short term. The Daily Index closed below its moving average line and the line slope has turned very slightly lower. The momentum indicator is just on the verge of going negative but remains a hair above its neutral line. It remains below its negative trigger line. The volume remains very low. The short term rating has again turned to the BEARISH side with the very short term moving average line continuing below the short term line for confirmation of the bear.

I should have gone negative on the immediate direction yesterday but you can’t win them all. I’ll play it safe today and go with the lateral direction as the direction of least resistance. The up side does not look that strong from an immediate direction but the down side doesn’t look that strong either.


tturaniuminvest said...

Merv & friends I have some stellar News from Down Under :)

Australia's Energy Resources (ERA) Suspends Uranium Processing

Anonymous said...

Merv, looking at your index chart, does it not show negative divergence between a falling RSI as the index marches higher over almost the entire range shown. Is this a concern?

BTW, thanks for the great blog.

Merv said...


Negative divergence, decreasing momentum strength these go together and are common during a topping process. Both are only a warning but warnings that should not be neglected.