May 17, 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 surged further ahead closing at 10353 on
The primary trend is down, secondary - up and
short trend - up.
The Nasdaq Composite climbed by a similar amount to 1741.
The primary cycle is forming a base (or stage
1), secondary trend - down, while the short trend is up.
The S&P 500 gained a further 8 points to
close at 1106.
Primary cycle - the base still shows weakness,
secondary trend - down and short cycle - up.
Shares in the drug-maker rose after it announced
that it had settled with the FDA, in connection with
manufacturing violations, and agreed to pay a $US500 million
Bell-South cuts jobs
The telecom provider will cut 4000 to 5000
jobs in a bid to stay competitive. (more)
The All Ords had another strong up day, closing
at 3362 on normal volume.
MACD* (26,12,9) and Slow Stochastic (20,3,3) are
both above their signal lines.
* I have reverted to using MACD 26,12,9 as
there was so little difference between the signals from the
default setting and from MACD 30,10,10.
NCP has encountered European pitfalls in its drive for global
pay-TV dominance. (more)
closed up 43 cents on normal volume.
The insurance group warns that
a $2.00 offer to shareholders, by National Exchange Pty Ltd,
should not be confused with the proposed share buy-back and
significantly undervalues IAG shares. (more)
MACD shows a bearish divergence while Chaikin
Money Flow is still strong.
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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