Merv’s Daily Uranium Index
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.