May 14, 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 rallied a further 1.8% to 10298 on
The Nasdaq Composite rallied 4% to 1719, still in a secondary
The S&P 500 rose more than 2% to 1097, still
in a secondary cycle down-trend.
Retail Sales up 1.2%
April retail sales were up 1.2% on last year,
largely due to Easter starting in March this year - something the
market seemed to ignore. (more)
First-quarter earnings for the
world's largest retailer jumped 15% compared to last year, while
same-store sales rose 8.1%. (more)
Chip equipment maker Applied
Materials earned 3 cents per share in the second quarter
compared to 21 cents last year, while sales were down 46%.
Performance is up on the last quarter. (more)
The All Ords appears unconvinced by the US
rally, forming an inside day with a close at 3263 on normal
Chaikin Money Flow continues to show a bullish
divergence while most other indicators are bearish.
News Corporation Limited writes down its investment in US-based
Gemstar TV guide by $7.7 billion. (more)
in a stage 4 decline, having under-performed the market since
More of the same
There were no major surprises
in the federal budget delivered by treasurer Peter Costello,
although healthcare may be affected by cuts to the
Pharmaceuticals Benefits Scheme. (more)
BHP Steel [BSL]
Investors in the spin-off are
to be compensated for volatility of steel prices by a high
dividend yield and a possible early capital return.
BHP: MACD and Chaikin Money Flow have both been
bearish for the last 4 months.
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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