April 23, 2002
These extracts from my daily
trading diary are intended to illustrate the techniques used in
short-term trading and should not be interpreted as investment
advice. Full terms and conditions can be found at
The Dow formed an inside day, falling 0.5% to
10089 on reasonable volume. The short-trend is down but the
secondary cycle up-trend is intact.
The Nasdaq Composite index fell 1.6% to close at 1730, testing
support at 1725. The index is still above the major 1700
support level, with resistance at 1950.
The S&P 500 moved lower, to close at 1100,
within the 1070 to 1180 trading range.
Recently dethroned as the world's largest
company, first-quarter earnings fell to $US 2.15 billion from
$US5.05 billion a year earlier. (more)
The largest chemical company in the US
missed analysts first-quarter estimates while sales fell
The online store narrows its first-quarter
loss as sales rise 21%. (more)
The All Ords closed down at 3352 on weak
Chaikin Money Flow continues in negative
territory, signaling that distribution is taking
The Point and Figure chart (High-Low price)
has completed a double top, breaking below support [B-] at the
Dollar at 54 US cents
The dollar is hovering at around 54 US cents
but is expected to slip back to 53 US cents. (more)
Mayne needs medical attention [MAY]
The healthcare and logistics
group warned that it will miss analysts' forecasts by as much
as 18%. (more)
The market has shown its faith in Peter
Smedley with Chaikin Money Flow signaling strong accumulation
over the last month.
The sector, Health & Related Products,
includes a number of outperforming stocks: SDI Limited (SDI),
Ellex Medical Lasers (ELX) and Micromedical Industries
Seven falls [SEV]
Seven Network stock falls as
ratings decline by 11% since the start of the year.
Note the bearish divergence on Chaikin Money
Flow in March 2002.
Short-term: Avoid long. Keep stop losses on
existing trades as tight as possible.
Medium-term: Wait for a new high on the All
Long-term: Wait for the Nasdaq or S&P 500
to break above their January highs.
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