May 20, 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 1.2% to 10229 on low volume. A
fall below 9750 would signal the start of a down-trend on the
The primary trend is down, secondary - up and
short trend - up.
The Nasdaq Composite dropped 2.3% to close at 1701.
The primary cycle is forming a base (or stage
1), secondary trend - down, while the short trend is up.
The S&P 500 fell 1.3% to close at 1081. The
target of 960 from the double top pattern may still be
Primary cycle - the base still shows weakness,
secondary trend - down and short cycle - up.
All that glitters is Gold
June delivery gold futures trade as high as $US
316.70 per ounce. (more)
Stocks decline on fears of terrorism and
VP Dick Cheney describes further terrorist
attacks as "almost certain", while leading economic indicators
are down 0.4%. (more)
The All Ords closed down at 3345 on normal
MACD* (26,12,9) and Slow Stochastic (20,3,3)
are still above their signal lines.
Lend Lease [LLC]
CEO David Higgins is to depart as the group looks for new
LLC fell sharply to close
at $10.80 on strong volume. MACD and Relative Strength have been
weak while Chaikin MF has shown accumulation - emphasizing the
need for more than one indicator.
The ASX now offers rebates and lower fees to
attract SFE derivatives traders to its new futures platform.
Chaikin Money Flow shows strong accumulation
since February but MACD now shows a bearish divergence.
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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