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 .
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 Systems reported third-quarter earnings
above analysts estimates, on sales in line with
The All Ords fell a further 20 points to 3274
on large volume. The target for the correction is 3230 to
Slow Stochastic and MACD are below their signal
lines, Chaikin Money Flow signals distribution.
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
St George [SGB]
The regional bank raised its first-half
operating profit by 41%, before write-downs relating to
Chaikin Money Flow shows strong accumulation in
April, while MACD shows some weakness.
Short-term: Avoid long.
Medium-term: Wait for the All Ords to form a base, expected
Long-term: Wait for the Nasdaq or S&P 500 to form a base.
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