May 10, 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 fell a further 1% to close below 10000,
at 9939, on normal volume.
The Nasdaq Composite dropped 3.0% to close at 1600, continuing
the secondary cycle down-trend.
The S&P 500 closed below the 1070 level, at
Warren Buffet's investment icon achieves a 52%
rise in first-quarter profits due to higher insurance prices.
The All Ords closed down at 3279 on weak volume,
approaching the correction target of 3230 to 3240.
chief John McFarlane has exercised 1 million share
Money Flow is strengthening but MACD still looks
Forrest quits Anaconda [ANL]
The founder of Anaconda Nickel
severs his remaining ties with the company. (more)
MACD has signaled a number of bullish
divergences, all of which have failed to deliver, while Chaikin
Money Flow has signaled strong distribution.
The banking sector continues its strong up-trend
with the index making new highs and relative strength (price
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.
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