May 1, 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 Terms
of Use .
The Dow rallied a further 1.1% to close at 10059
on strong volume. The short-trend is down but the secondary cycle
up-trend is intact.
Oracle, Sun and Cisco were hammered in the morning session but
the Nasdaq Composite index rallied late to close 0.6% down at
1677. The secondary cycle is still in a down-trend.
The S&P 500 rose 0.9% to close at 1086, well
above the key 1070 support level. A break below 1070 has a
calculated target of 960.
US automakers increase sales
GM and Chrysler lead increased April car and
truck sales. (more)
The All Ords rallied to close at 3309 on normal
volume. If the index breaks below 3300, the next major support
level is at 3230 to 3240, the same as the target from the double
March quarter profit fell by 33% due to weak
base metals prices. (more)
Chaikin Money Flow has been signaling
distribution since January.
Austar gets a helping hand [AUN]
AUN closed at 16.5 cents after the pay TV
operator revealed that first-quarter interest charges had
increased five-fold to $16 million - extra charges relating to
the default on bank loans. (more)
MACD showed a bearish divergence in
Short-term: Avoid long. Keep stop losses on existing trades as
tight as possible.
Medium-term: Wait for the All Ords to form a base.
Long-term: Wait for the Nasdaq or S&P 500 to break above
their January highs.
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