U3O8 Price (compliment of UxC
http://uxc.com/)
The spot price for U3O8 for the week July 26, 2010
is U$46.00 , up U$4.25 since July 19, 2009.
ICKO Uranium Index
The material on this page could be redistributed for
non-commercial and non-business purpose without written permission. The member
of the index should not be regarded as recommendation. Investment should be done
with proper due diligent in conjunction with financial advisors.
The best and worst performance line shows how difference the performance
could be. The average does not reflect individual stock's performance but
provides a sector trend. Information
should be assessed and interpreted with respective to the reader's perspective.
Warning: Chart's interpretation is based on CK's personal perception which may not reflect the market's agenda.
The index calculation has been adopted the Heng Sang Index calculation. The
change of the the daily index is determined by the variation of the components
rather than a reference in time. The numbers are different but the pattern
remains the same.
The best and worst from the reference date has been dropped. The daily change
is adopted to provide the volatility insight of the market.
Comments:
How is the index computed?
Index is 100 on January 1, 2006. The following is the formula of the index:
Index = Average of (Current Price / Reference
Price) * 100
Best = Best change of the day.
Worst = Worst change of the day.
The 200MA Distance Study
This may or may not be CK's proprietary study. (CK has not come across such
study by others.) During the course of following uranium stocks, CK finds the
rate of change is positive most of the time and too steep to see chart pattern.
So the distance from 200MA is used as the core of the transformation because the 200MA is usually used
as a reference for overbought (when above) and oversold (when below). By
computing the percentage as the distance from the 200MA we can see the change in
a reduced manner so it shows the changes for parabolic trend line.
Reviewing the past pattern, the following are observed:
- 60% seems to be the top of the distance. In other situation it could be
different. This just another trend line. The 60% should not be a rule.
- The corrections forming a bottom trend line. The USI (Uranium Stock
Index) corrected to about 0% but steadily corrected below 0% which is the
normal oversold situation.
- The correction is not confirmed until the 200MAD crosses its 200MA.
- The bottoming process does not start until the 200MA starts to dip.
This study seems not generally applicable to all situations. The oil and gas
situation is not well suite for this study as it provides less
information than the RSI or MACD and there seems no observable patterns.
CK would share the research later.
A comparison of cost of electricity from various form of energy
Source: “Projected Costs of Generating Electricity, 2005 Update”; Nuclear
Energy Agency, International Energy Agency, OECD
This chart does not present any surprise. We should consider the unit cost as
the reciprocal of flexibility. Wind turbine could be as small as a unit at
your backyard but the up front investment of nuclear is at billion. Mass energy
production is a cyclic competition among nuclear, coal and gas.
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