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Trading Diary
May 3, 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 .




USA
The Dow is back down at the 10000 level, closing at 10006 on normal volume. The secondary cycle up-trend is still intact.

The Nasdaq Composite index managed a more spectacular 1.9% fall, to close at 1613. The secondary cycle is in a down-trend.
 
The S&P 500 again tested the 1070 support level, closing at 1703. A break below the support level has a calculated target of 960.
 
Gold is gaining strength
Gold shares are already discounting higher gold prices and may be out-performed by gold bullion. (more)
 
ASX Australia
The All Ords gained slightly, closing above the 3300 support level, at 3315 on strong volume.
Chaikin Money Flow has moved to above zero and the Slow Stochastic above its signal line, but it is too early to call this a market bottom.


 
ResMed in need of resuscitation [RMD]
RMD recorded strong growth in sales and earnings but warn of difficulty meeting forecasts for the fourth-quarter. (more)
The stock fell as low as $4.73 before rallying to $5.40. The sharp increase in Chaikin Money Flow should not be interpreted as a buy signal.


Interest rates
Strong retail sales may precipitate an interest rate rise. (more)
 
Sectors: Gold
The gold index XGO continues to rise, with relative strength (price ratio: all ords) improving.


 




Conclusion
 
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.

Colin Twiggs



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