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Trading Diary
May 7, 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 formed an inside day on large volume, signaling uncertainty, and closed up slightly at 9836. The secondary cycle up-trend is still intact.

The Nasdaq Composite index eased to 1573. The secondary cycle is in a down-trend.
 
The S&P 500 closed down 0.3% at 1049. The downward break has a calculated target of 960.
 
Fed leaves rates unchanged
As expected, the Fed left the federal funds rate unchanged at 1.75%. (more)
 
Cisco rebound
Cisco Systems reported third-quarter earnings above analysts estimates, on sales in line with expectations. (more)
 
ASX Australia
The All Ords fell a further 20 points to 3274 on large volume. The target for the correction is 3230 to 3240.
Slow Stochastic and MACD are below their signal lines, Chaikin Money Flow signals distribution.


 
AMP [AMP]
The insurer is under pressure because of an outflow in its funds management operations. (more)
Chaikin Money Flow switched from accumulation to distribution in early April, following a bearish divergence on MACD.


 
St George [SGB]
The regional bank raised its first-half operating profit by 41%, before write-downs relating to Wealthpoint. (more)
Chaikin Money Flow shows strong accumulation in April, while MACD shows some weakness.


 




Conclusion
 
Short-term: Avoid long.
Medium-term: Wait for the All Ords to form a base, expected around 3230.
Long-term: Wait for the Nasdaq or S&P 500 to form a base.

Colin Twiggs



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