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.

02 February 2011

Merv's Daily Commentary 02 Feb 2011

After The Close, 02 Feb 2011

Merv’s Daily Uranium Index
Market Data

Open: 271.63
High: 277.61
Low: 267.55
Close: 273.55
Volume: 11097

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

Just a couple of quick comments to answer two recent comments in the comments section.

As for size of a position:

When an analyst doesn’t have a clue he will recommend diversification.
When an analyst doesn’t have a clue he will recommend buying dozens and dozens of stocks.
If you don’t know what you are doing, flip a coin.

If you follow the technical concept and limit your losses FAST, buy what’s moving and get out when it stops or reverses. You should not need to buy more than maybe 3 to 5 stocks, if that many. You WILL loss on some trades but if you keep your losses small and let your profits run you will end up well to the good.

As for the downward sloping RSI, a downward sloping RSI is ALWAYS a warning. How serious a warning depends upon the DIRECTION of the stock price. It also depends upon if the stock is in a continuing trend such as making new highs with a negative divergence in the RSI or if the stock is bottoming and STARTING a new bull trend while the RSI is still in a downward slope. One would ALWAYS like to see a positive divergence in the RSI before the stock bottoms and reverses but that does not always happen. Much depends upon training and experience.

The Merv’s Daily Uranium Index closed with a gain of 3.40 points or 1.26%. There were 32 winners, 14 losers and 4 stocks confused. Cameco gained 0.7%, Denison lost 1.0%, Extract gained 3.9%, Paladin gained 1.5% and Uranium One gained 0.2%. The best winner was Kivalliq Energy with a gain of 15.2% while the loser of the day was Xemplar Energy with a loss of 9.8%. Market Vectors Nuclear Energy ETF gained 0.5% while the Global X Uranium ETF gained 1.6%.

As for the indicators and ratings, nothing has changed since yesterday. The Stochastic Oscillator has now entered its overbought zone so one might expect the Index to take a rest and maybe even start a reversal, but it has not yet started.


Anonymous said...

usually on a 14 day rsi, if the line is travelling above 50 then your in positive territory and the price is if not strong then its sideways or upawrds...drop below 50 the get out!!

Anonymous said...

Hi Merv,

Thanks for your insight. I know that there are a LOT of people that have 'portfolios' of stocks as that is what they have grown accustomed to after listening to various 'pros'.
I've done this myself, producing a diversified portfolio within a specific sector.
Swing trading the trends is probably one of the best strategies for any market. As well as keeping the holdings to just a few stocks.

Thanks again.

Merv said...


Are you using the 14 day RSI for short term trading, intermediate term speculation or long term investing? I know that probably 99.9% of technicians use a short term RSI (usually 13 or 14 day but sometimes 9 day)for everything but I always have a problem using short term indicators for anything other than short term trading. One MUST know what one's investment time period is and use indicators compatible with that time period.

As for your criteria, you are possibly right much of the time BUT I can show you many, many examples where the 14 day RSI is above 50% while the price trend is downwards. Never assume a perfect relationship even if it sounds like it should be correct.

Merv said...

Anonymous number 2

Just think for a moment. If you know what you are doing why do you need to invest in dozens of stocks or why do you need to diversify? If you don't know what you are doing, why are you risking your capital in the market?

Anonymous said...

right on thanks merv...morty