May 16, 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 recovered to 10289 on normal
The primary trend is down, secondary - up and
short trend - up.
The Nasdaq Composite formed an inside day, with a slight gain to
The primary cycle is forming a base (or stage
1), secondary trend - down, while the short trend is up.
The S&P 500 gained 7 points to close at
Primary cycle - the base still shows weakness,
secondary trend - down and short cycle - up.
Dell reported April-quarter earnings of 17 US
cents per share, the same as last year, compared to an expected
16 US cents. Sales were largely unchanged at $US 8 billion.
The All Ords had another strong day, closing at
3343 on strong volume.
MACD (26,12,9) and Slow Stochastic (20,3,3) are
both above their signal lines.
Vivendi threatens to withdraw from the purchase of NewsCorp
pay-TV assets in Italy. (more)
climbed in the morning session before retreating to close 19
cents down on strong volume.
James Hardie [HDX]
The fiber cement company will
make a capital return to shareholders, from the sale of its
gypsum business. Fourth-quarter earnings were strong despite
annual earnings falling 23%. (more)
MACD and Chaikin Money Flow show
Lion Nathan [LNN]
The brewer reported a 12.5%
increase in first-half earnings. (more)
Relative strength (price ratio: XAO) is
increasing but the sector index (XAT) shows a stage 4
report warns that the industry faces rationalization and only a
handful of insurers will survive. (more)
Relative strength (price ratio: All Ords) and
the 30-week weighted moving average show the sector in a stage 4
Short-term: The rally may not be able to sustain
itself: long using
trailing buy-stops. Maintain tight stop-losses.
Medium-term: The All Ords has not yet formed a
Long-term: Wait for the Nasdaq or S&P 500
to break out from their bases (trading ranges).
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