April 25, 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 fell to as low as 9926 in the morning,
below the 10000 level, but rallied later in the day to close
almost unchanged at 10035 on reasonable volume. The short-trend
is down but the secondary cycle up-trend is intact.
The Nasdaq Composite index closed unchanged at 1713. A break
below the 1700 support level will signal a down-trend on the
The S&P 500 weakened slightly to 1091,
within the 1070 to 1180 trading range.
The theme parks have recovered to beat
expectations but ABC Television Network has suffered from a
fall in advertising sales. (more)
Saudi - US rift?
The Saudis may threaten the US with the "oil
weapon" if they continue to support Israel's military
The ASX was closed for ANZAC Day.
The Australian dollar strengthened to its
highest level in 14 months against the US dollar.
The sector charts show a healthy up-trend with
improving relative strength
but Chaikin Money Flow and MACD show bearish
divergences on the daily charts. Tighten up stops in this
Short-term: Avoid long. Keep stop losses on
existing trades as tight as possible.
Medium-term: Wait for the All Ords to bottom
out - the double top has a target of 3230 to 3240.
Long-term: Wait for the Nasdaq or S&P 500
to break above their January highs.
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