May 9, 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 .
More uncertainty - The Dow formed an inside day,
closing 1% down at 10037 on normal volume.
The Nasdaq Composite also formed an inside day, down 2.7% at
1650. The secondary cycle is still in a down-trend.
The S&P 500 was down 1.75% at 1073, testing
the 1070 level.
WorldCom cut to "junk bond" rating
Moody's Investors Service cut the credit rating
on WorldCom's $32 billion of debt three levels. (more)
Stocks fall as April sales
The All Ords rallied strongly in the morning but
encountered heavy selling later to finish almost unchanged at
3286. Sellers are back in control. The target for the correction
is 3230 to 3240.
National Australia Bank lifted its first-half profit by 11% and
extends it share buy-back plan by $1 billion.
averages look positive but MACD is bearish.
Mayne Group Limited rose
3.7% on speculation that the company would announce a share
Chaikin Money Flow and MACD are still
AMP announces it is to sell
its UK-based Henderson Private Asset Management.
Moving averages (150-day and 20-day exponential
MA), Chaikin Money Flow and MACD are all bearish.
Smorgon Steel [SMS]
Trading has been halted pending an
Chaikin Money Flow shows strong accumulation
since January followed by a sharp fall in the last week.
Short-term: Avoid long.
Medium-term: Wait for the All Ords to form a
Long-term: Wait for the Nasdaq or S&P 500 to
form a base.
P.S. We are trying out new Email
software. Please report if you experience any problems with the
Please forward this to your friends and
Access the Trading Diary Archives.