After The Close, 28 Feb 2011
Merv’s Daily Uranium Index
Market Data
Open: 268.03
High: 272.83
Low: 262.61
Close: 266.19
Volume: 5554
Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.
Fibonacci Numbers
One of the mysteries in technical analysis (in my view) is the extent to which the Fibonacci series of numbers play in so many different technical indicators and techniques. Without going into the various trends, arcs, fans, etc where they come into play let me just highlight here what they are and provide one interesting story about them.
The Fibonacci series of numbers start with 0 and 1. From there each succeeding number is developed by adding the previous two numbers. So, 0 plus 1 equals 1. Next, One plus one equals two. After that two plus one equals 3. And so on. The series becomes:
0,1,1,2,3,5,8,13,21,34,55,89,144,233,377, etc.
Okay, we have a series, so what?
Once you get beyond the first few numbers you will see that each succeeding number is 1.618 times the previous number. This is often referred to as the “GOLDEN RATIO”. Also, if you divide the number one by the Golden Ratio you will get 0.618 which is also equal to the golden ratio minus one. This number also has a name but it’s lost in my brain somewhere, probably never to be recovered unless I can find the article where I first came across it.
Now the Fibonacci series can be found almost everywhere in nature, the pyramids, engineering, finance, etc. There is a story (in that article that I have misplaced long ago) about an accountant who did an experiment. He did some measurements on a whole lot of women and found that if you multiply the height to their naval by the golden ratio the result comes almost exactly equal to their overall height. Don’t ask me where he got all these women for the experiment, after all he was not a Doctor but an accountant (and I bet you thought accounting was a dull occupation).
Anyway, I give you this to do as you wish with this information. You only get the most important stuff here.
It was a pretty dull day, at least by the closing bell. The Daily Index moved up and down (or was it down and up) but ended the day with a decline that was not even visible. On to tomorrow.
The Merv’s Daily Uranium Index closed lower by 0.01 points or 0.005% (the average stock gained 0.82% only due to two stocks with double digit gains). There were 23 winners, 21 losers and 6 stocks going nowhere. Cameco lost 1.8%, Denison lost 2.7%, Extract lost 1.2%, Paladin lost 0.8% and Uranium One gained 3.6%. The best winner was Pitchstone with a gain of 20.4% while the worst loss was Energy Fuels with a loss of 9.6%. Market Vectors Uranium-Nuclear Energy ETF gained 0.8% while Global X Uranium ETF gained 0.3%.
There was no change in the short and intermediate term indicators so the intermediate term rating remains BULLISH while the short term rating remains BEARISH.
As for the immediate direction of least resistance I’ll go with the lateral direction today and see what happens.
Merv’s Daily Uranium Index
Market Data
Open: 268.03
High: 272.83
Low: 262.61
Close: 266.19
Volume: 5554
Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.
Fibonacci Numbers
One of the mysteries in technical analysis (in my view) is the extent to which the Fibonacci series of numbers play in so many different technical indicators and techniques. Without going into the various trends, arcs, fans, etc where they come into play let me just highlight here what they are and provide one interesting story about them.
The Fibonacci series of numbers start with 0 and 1. From there each succeeding number is developed by adding the previous two numbers. So, 0 plus 1 equals 1. Next, One plus one equals two. After that two plus one equals 3. And so on. The series becomes:
0,1,1,2,3,5,8,13,21,34,55,89,144,233,377, etc.
Okay, we have a series, so what?
Once you get beyond the first few numbers you will see that each succeeding number is 1.618 times the previous number. This is often referred to as the “GOLDEN RATIO”. Also, if you divide the number one by the Golden Ratio you will get 0.618 which is also equal to the golden ratio minus one. This number also has a name but it’s lost in my brain somewhere, probably never to be recovered unless I can find the article where I first came across it.
Now the Fibonacci series can be found almost everywhere in nature, the pyramids, engineering, finance, etc. There is a story (in that article that I have misplaced long ago) about an accountant who did an experiment. He did some measurements on a whole lot of women and found that if you multiply the height to their naval by the golden ratio the result comes almost exactly equal to their overall height. Don’t ask me where he got all these women for the experiment, after all he was not a Doctor but an accountant (and I bet you thought accounting was a dull occupation).
Anyway, I give you this to do as you wish with this information. You only get the most important stuff here.
It was a pretty dull day, at least by the closing bell. The Daily Index moved up and down (or was it down and up) but ended the day with a decline that was not even visible. On to tomorrow.
The Merv’s Daily Uranium Index closed lower by 0.01 points or 0.005% (the average stock gained 0.82% only due to two stocks with double digit gains). There were 23 winners, 21 losers and 6 stocks going nowhere. Cameco lost 1.8%, Denison lost 2.7%, Extract lost 1.2%, Paladin lost 0.8% and Uranium One gained 3.6%. The best winner was Pitchstone with a gain of 20.4% while the worst loss was Energy Fuels with a loss of 9.6%. Market Vectors Uranium-Nuclear Energy ETF gained 0.8% while Global X Uranium ETF gained 0.3%.
There was no change in the short and intermediate term indicators so the intermediate term rating remains BULLISH while the short term rating remains BEARISH.
As for the immediate direction of least resistance I’ll go with the lateral direction today and see what happens.
1 comment:
Merv, thanks for taking the time to make this explanation.
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