After The Close, 01 Feb 2011
Merv’s Daily Uranium Index
Market Data
Open: 264.55
High: 275.03
Low: 262.29
Close: 270.15
Volume: 14079
Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.
Now, that’s more like it. We’re into new rally highs with indicators (except momentum) hitting new highs with the Index. That’s what happens when I happen to leave the market for a day.
The Merv’s Daily Uranium Index closed higher by 8.86 points or 3.39% after a 3.51% rise yesterday. There were 41 winners, 5 losers and 4 stocks that don’t seem to know there is a market going on. Cameco gained 1.6%, Denison gained 4.8%, Extract gained 2.7%, Paladin gained 8.4% and Uranium One gained 3.7%. The best winner was Terra Ventures with a gain of 14.6% while the loser of the day was Tournigan with a loss of 2.6%. Market Vectors Nuclear Energy ETF gained 3.0% while the Global X Uranium ETF gained 5.1%.
During the week-end the intermediate term was rated as bullish. It remains so after two very good Index days. However, the momentum is still weak but that is understandable once we know how the momentum is calculated and how it acts. It has been showing a lateral Index move. This is seen as a move by the momentum towards its neutral line. Initially, the Index can quickly move into new highs from its lateral trend while the momentum needs to gain some strength before it overcomes its downward slide. That is what is happening here. Momentum is still positive and has now closed above its positive trigger line. It is still below its previous highs and may be looked at as a negative divergence but once a new bull move has started that interpretation may be false. Go with the positive position and positive trigger line. The volume indicator is now in new all time high territory so that is very positive. The Intermediate term remains BULLISH.
The short term was bearish on the week-end. Things have turned around as one would expect after the actions these past few days. The Daily Index closed above its positive moving average line. The momentum indicator is roaring higher above its positive trigger line. It has almost reached its overbought line. Another day and it will be there. The daily volume action is now above its 15 day average volume for a positive short term volume action. The short term is now BULLISH. This is confirmed by the very short term moving average line moving above the short term line.
As for the immediate direction of least resistance, that just has to be to the up side although another day or two and one can expect some hesitation.
Merv’s Daily Uranium Index
Market Data
Open: 264.55
High: 275.03
Low: 262.29
Close: 270.15
Volume: 14079
Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.
Now, that’s more like it. We’re into new rally highs with indicators (except momentum) hitting new highs with the Index. That’s what happens when I happen to leave the market for a day.
The Merv’s Daily Uranium Index closed higher by 8.86 points or 3.39% after a 3.51% rise yesterday. There were 41 winners, 5 losers and 4 stocks that don’t seem to know there is a market going on. Cameco gained 1.6%, Denison gained 4.8%, Extract gained 2.7%, Paladin gained 8.4% and Uranium One gained 3.7%. The best winner was Terra Ventures with a gain of 14.6% while the loser of the day was Tournigan with a loss of 2.6%. Market Vectors Nuclear Energy ETF gained 3.0% while the Global X Uranium ETF gained 5.1%.
During the week-end the intermediate term was rated as bullish. It remains so after two very good Index days. However, the momentum is still weak but that is understandable once we know how the momentum is calculated and how it acts. It has been showing a lateral Index move. This is seen as a move by the momentum towards its neutral line. Initially, the Index can quickly move into new highs from its lateral trend while the momentum needs to gain some strength before it overcomes its downward slide. That is what is happening here. Momentum is still positive and has now closed above its positive trigger line. It is still below its previous highs and may be looked at as a negative divergence but once a new bull move has started that interpretation may be false. Go with the positive position and positive trigger line. The volume indicator is now in new all time high territory so that is very positive. The Intermediate term remains BULLISH.
The short term was bearish on the week-end. Things have turned around as one would expect after the actions these past few days. The Daily Index closed above its positive moving average line. The momentum indicator is roaring higher above its positive trigger line. It has almost reached its overbought line. Another day and it will be there. The daily volume action is now above its 15 day average volume for a positive short term volume action. The short term is now BULLISH. This is confirmed by the very short term moving average line moving above the short term line.
As for the immediate direction of least resistance, that just has to be to the up side although another day or two and one can expect some hesitation.
2 comments:
Hi Merv, great analysis as always.
So, a downwards sloping RSI with a rising price is not always a bad thing...especially with today's market!
Hi Merv, one more question. Can you talk a little on position sizing if you have the time? I've heard that some say that a position should be no more than 2% of a portfolio. I know it is different for everyone and their risk tolerances.
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