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.
The Daily Index seems to be bouncing off an up trend support line. How much longer before it either zooms upward or drops below the support is unknown BUT my betting is on a drop below support. After all, the price of uranium took a big hit this week dropping something like $3.50, which for uranium is a big deal. This cannot be good for stocks. However, stocks have a habit of playing the role of lead indicators so if the drop in price of uranium is not to be taken as a serious decline then the stocks should soon reverse. AH! This is where the flip of a coin comes in good and handy.
The Merv’s Daily Uranium Index closed lower by only 0.29 points or 0.11%. There were 17 winners, 29 losers and 4 stocks hiding their heads in shame. Cameco gained 1.2%, Denison lost 5.9%, Extract gained 6.7%, Paladin gained 2.5% and Uranium One lost 2.4%. The best daily winner was Wealth Minerals with a daily gain of 7.5% while the loser of the day was Denison with that 5.9% loss. Market Vectors Uranium + Nuclear Energy ETF gained 0.2% while Global X Uranium ETF lost 0.9%.
With this small daily loss on the Index nothing has changed from yesterday so both the intermediate and long term ratings remain BEARISH. In both cases the next level lower moving average lines have now both crossed below their time period lines to confirm both bear ratings.
As for the immediate direction of least resistance, because of that support line I’ll go with the lateral direction. Flipping the coin confirmed that direction by landing on its edge (yeh, right?).