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.

03 May 2011

Merv's Daily Commentary 03 May 2011

After The Close, 03 May 2011

Merv’s Daily Uranium Index
Market Data

Open: 189.95
High: 194.44
Low: 185.78
Close: 189.00
Volume: 6789

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

Well, the trend can’t stay inside that declining wedge pattern forever. These patterns usually break on the up side so keep watching, an upside should come any day now. If the Conservatives (in Canada) can become the majority government and the socialistic NDP can become the dominant party in Quebec and the Liberals can get wiped off the map, then anything can happen.

The Merv’s Daily Uranium Index closed the day on the down side by 2.20 points or 1.15%. There were 11 winners, 30 losers and 9 stocks lost in the madness. Cameco lost 1.9%, Denison lost 1.3%, Extract lost 4.6%, Paladin gained 2.1% and Uranium One gained 3.7%. The best daily winner was Uranerz Energy with a gain of 10.4% while the worst loser was Pitchstone with a loss of 8.3%. Market Vectors Uranium + Nuclear Energy ETF lost 0.4% while Global X Uranium ETF lost 0.01%.

As mentioned above, the Daily Index continues to trade inside that downward sloping wedge pattern making lower lows and lower highs. The action is getting very compact and may be coming to an end but still there is no real sign yet of a major reversal ahead.

On the intermediate term the Index remains below its negative sloping moving average line. The momentum indicator remains in its negative zone moving above and below a very gentle downward sloping trigger line. Today, the Index is once more below the line. The volume indicator is very slightly below its negative trigger line and could move above it any day. For today the intermediate term rating remains BEARISH. The short term moving average line remains well below the intermediate term line confirming the bear.

On the short term the Daily Index continues to trade just below its negative sloping moving average line. The momentum indicator is tracking a horizontal path just above its oversold line and today is just below its negative trigger line. The daily volume activity continues to suggest that the speculators remain out of the uranium stocks. On the short term the rating also remains BEARISH with the very short term moving average line confirming this bear.

It looks like the Stochastic Oscillator is turning to the up side suggesting that there may be a rally just ahead. For now that is just a suggestion. The actual position of the SO is still negative. I’ll go with the lateral direction as the direction of least resistance for tomorrow.

No comments: