Merv's Weekly Commentary 10 Oct 2011

Merv’s Weekly Uranium Review

for week ending 07 October 2011

Merv’s Daily Uranium Index

Market Data for Friday 07 Oct 2011

Open: 134.88

High: 137.57

Low: 131.21

Close: 133.58

Volume: 4268

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

Note that additional charts of the Indices were posted earlier and should be viewed during this commentary.

Sorry for the delay in posting this week. It’s Thanksgiving in Canada and I just decided to relax and enjoy the holiday.

The posting will be short as nothing much has happened during the week (again) except some strengthening in the short term.

The Merv’s Daily Uranium Index closed on Friday with a loss of 0.58 points or 0.43%. There were 20 winners, 19 losers and 11 slackers. Cameco lost 2.5%, Denison lost 0.9%, Extract gained 11.3%, Paladin gained 7.7% and Uranium One lost 6.6%. The best winner of the day was JNR with a gain of 13.3% while the loser of the day was Quaterra with a loss of 8.8%. Market Vectors Uranium + Nuclear Energy ETF lost 0.2% while Global X Uranium ETF gained 0.4%.

For the week as a whole the Merv’s Weekly Uranium Index closed with a gain of 106.35 points or 2.66% while the Daily gained 3.62%. There were 28 weekly winners, 19 losers and 3 slackers. Cameco gained 3.6%, Denison gained 1.8%, Extract gained 11.3%, Paladin gained 29.4% and Uranium One gained 1.9%. Paladin was the best weekly winner with that 29.4% gain while USEC was the loser of the week with a loss of 24.8%. Market Vectors Uranium + Nuclear Energy ETF gained 0.5% and Global X Uranium ETF gained 3.9%.

As mentioned, nothing much has changed during the week, especially for the long and intermediate term. The ratings at the Friday close remain BEARISH for both periods.

On the short term the Daily Index moved above its short term moving average line on Thursday and remained above the line on Friday. The line slope, however, remains pointing downward. The short term momentum indicator is still in its negative zone but is moving upward and has moved above its now positive sloping trigger line. The daily volume action is still too small to get excited about. On the short term, at the Friday close, the rating has improved to the + NEUTRAL level, one level below a full bull. The very short term moving average line remains below the short term line confirming that we are not quite into a short term bull just yet.