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.

14 March 2011

Merv's Daily Commentary 14 Mar 2011

After The Close, 14 Mar 2011

Merv’s Daily Uranium Index
Market Data

Open: 199.65
High: 214.52
Low: 187.99
Close: 205.99
Volume: 44141

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

I’m not surprised that the uranium stocks continued to decline today but who would expected such a severe drubbing. What can one say?

The Merv’s Daily Uranium Index closed lower by just a wee bit, like 38.23 points or 15.65%, the worst day in uranium stocks since I have been calculating their performance, i.e. in almost 10 years. There were no winners, zero, zip, today. There were 49 losers and by golly there was one stock closing the day unchanged. I think I’ll refer to this stock as today’s winner of the day. Cameco lost 12.7%, Denison lost 22.3%, Extract lost 11.0%, Paladin lost 21.2% and Uranium One lost 27.7%. The best winner of the day is that no winner but only a break even stock, Ucore Uranium. The loser of the day was Fission Energy with a loss of 33.9%. Market Vectors Uranium + Nuclear Energy ETF lost 12.0% while Global X Uranium ETF lost 17.4%.

Unfortunately, the dive today has taken the Daily Index into a level that now rates the long term as BEARISH. Of course, the other time periods were already BEARISH so nothing has changed in these ratings.

Always looking for a silver lining, one could say that the stocks had a rally today. The Daily Index opened below 200 but by the end of the day the Index closed above 200 for a rally after the initial shock was worked out. Maybe the up side will continue but with the decline today all bets are off as to what will happen tomorrow.

Those that had been following the ratings in the weekly Table should not have been hurt by this decline as they should have been out of the market. I usually suggest the intermediate term as the best term to watch and act upon, this is the term most often displayed in my charts. Two weeks ago the Table showed only a 24% bullish percentage for the component stocks in the intermediate term. This past week-end that bullish percentage dropped to 7% but one would not have had time to act if one had waited until today. Follow the charts and ratings. Sometimes they are wrong but at least you have your capital on hand to get back in.

1 comment:

Got A Watch said...

Good luck and prayers to the people of Japan.

It's an ugly selloff in uraniums, and I think the entire sector's formerly bright prospects will be damaged, perhaps permanently.

But as you say, a sharp trader should have already sold before this disaster. I went to ca$h last week, myself as I didn't like the look of the charts.

I will probably focus more on rare earths stocks in the near future, and silver miners.