May 24, 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 by more than 1% to 10104 on low
The primary trend is up, secondary - up and
short trend - down.
The Nasdaq Composite dropped more than 2% to close at
The primary cycle base is weak with the index
starting to trend downwards, the secondary and short trends are
The S&P 500 closed 13 points down at
The primary cycle base is weak and starting to
trend lower, the secondary trend is down and short cycle -
The market will be closed on Monday.
Stocks down ahead of Memorial Day
Microsoft and Intel led stocks lower as Goldman
Sachs warns of lower semiconductor demand and the government
revises first-quarter growth estimates downwards. (more)
CMS chief quits
The CEO of CMS Energy Corp. resigns after
disclosure of $US 5.2 billion in sham electricity trades.
Institutional buying helped the All Ords to
close up at 3338 on low volume.
The primary trend is up, secondary - down and
short trend - up.
Chaikin Money Flow fluctuates around zero,
Slow Stochastic (20,3,3) has joined MACD
(26,12,9) above its signal line.
The dollar's rise may hurt exporters.
Gold bulls are back
Gold made a 30-month high this week, reaching
$US 322.5 an ounce. (more)
Chaikin Money Flow and Relative Strength
(price ratio: xao) both show strength, while MACD appears to be
recovering after a bearish divergence.
Short-term: Look for new entries. Maintain
Medium-term: Wait for the All Ords to form a
Long-term: Wait for a bull-trend on the Nasdaq
or S&P 500 (primary cycle).
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