After The Close, 29 Oct 2008
Merv’s Daily Uranium Index
Market Data
Open: 104.72
Hugh: 116.52
Low: 100.69
Close: 111.96
Volume: 7031
Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.
Well, let’s not get too excited but it looks like a rally is in progress. It’s still early in the game but the direction looks encouraging. The indicators are also starting to move in the right direction, so, let’s get to it.
The Merv’s Daily Uranium Index closed on the up side again, up 8.86 points or 8.69%. There were 38 winners, 6 losers and 6 going nowhere. That’s more like the ratio of winners and losers that I’d like to see more often. Of the five largest stocks by market value, all were winners. Cameco gained 3.9%, Denison gained 6.7%, Paladin gained 16.7%, Uranium One, \making up for lost time gained 34.4% and USEC gained 3.0%. The best performer on the day was Strathmore Minerals with a gain of 63.2% while the loser on the day was Bayswater Uranium with a loss of 15.8%.
Looking at the intermediate term indicators things are starting to improve but still need a little more before the rating starts to improve. The Index remains below its negative sloping moving average line. The momentum indicator is showing improvement and has now well ahead of the Index by moving above its previous high during the Index box period. It is above its positive trigger line but still in its negative zone. The volume indicator is also moving ahead of the Index and is just about to breach its box period highs. It is, however, still below its negative sloping trigger line. Although the indicators are showing improvement it is still not enough to change the rating. The intermediate term rating remains BEARISH.
As noted here often, one should see trend changes in the short term indicators first, followed by the intermediate term later. Well, this is what’s happening. On the short term the Index has now moves above its short term moving average line and the line has just turned very gently higher. The short term momentum indicator (shown yesterday) is roaring higher above its positive trigger line but just short of its neutral line (maybe tomorrow it will go above). To round out the indicators, the volume indicator has now moved above its trigger line and the trigger has turned upwards. The short term rating has now gone full BULLISH with these indicator changes.
As for the immediate term direction of least resistance, that would now be to the up side even though the box has not yet been breached. The Index is well above its positive very short term moving average line. The Stochastic Oscillator is just a shade behind the times but is moving higher above its trigger line but not yet above its neutral line.
Short term it looks like a rally in progress. It will be more encouraging once the Index breached that upper resistance line from the box pattern. In the mean time, enjoy but keep your exit strategy active as reversals have been the norm in this market.
Merv’s Daily Uranium Index
Market Data
Open: 104.72
Hugh: 116.52
Low: 100.69
Close: 111.96
Volume: 7031
Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.
Well, let’s not get too excited but it looks like a rally is in progress. It’s still early in the game but the direction looks encouraging. The indicators are also starting to move in the right direction, so, let’s get to it.
The Merv’s Daily Uranium Index closed on the up side again, up 8.86 points or 8.69%. There were 38 winners, 6 losers and 6 going nowhere. That’s more like the ratio of winners and losers that I’d like to see more often. Of the five largest stocks by market value, all were winners. Cameco gained 3.9%, Denison gained 6.7%, Paladin gained 16.7%, Uranium One, \making up for lost time gained 34.4% and USEC gained 3.0%. The best performer on the day was Strathmore Minerals with a gain of 63.2% while the loser on the day was Bayswater Uranium with a loss of 15.8%.
Looking at the intermediate term indicators things are starting to improve but still need a little more before the rating starts to improve. The Index remains below its negative sloping moving average line. The momentum indicator is showing improvement and has now well ahead of the Index by moving above its previous high during the Index box period. It is above its positive trigger line but still in its negative zone. The volume indicator is also moving ahead of the Index and is just about to breach its box period highs. It is, however, still below its negative sloping trigger line. Although the indicators are showing improvement it is still not enough to change the rating. The intermediate term rating remains BEARISH.
As noted here often, one should see trend changes in the short term indicators first, followed by the intermediate term later. Well, this is what’s happening. On the short term the Index has now moves above its short term moving average line and the line has just turned very gently higher. The short term momentum indicator (shown yesterday) is roaring higher above its positive trigger line but just short of its neutral line (maybe tomorrow it will go above). To round out the indicators, the volume indicator has now moved above its trigger line and the trigger has turned upwards. The short term rating has now gone full BULLISH with these indicator changes.
As for the immediate term direction of least resistance, that would now be to the up side even though the box has not yet been breached. The Index is well above its positive very short term moving average line. The Stochastic Oscillator is just a shade behind the times but is moving higher above its trigger line but not yet above its neutral line.
Short term it looks like a rally in progress. It will be more encouraging once the Index breached that upper resistance line from the box pattern. In the mean time, enjoy but keep your exit strategy active as reversals have been the norm in this market.
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