Trading Diary
May 27, 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 .
USA
US markets were closed for the Memorial Day
holiday.
BW Top 50
Business Week's Top 50, headed
by stalwart Johnson & Johnson, is missing a few of the former
high-fliers. (more)
ASX Australia
The All Ords closed weaker at 3335 on low
volume. A break above 3370 would complete an
inverted head and shoulders pattern.
The primary trend is up, secondary trend -
down.
Chaikin Money Flow is fluctuating around zero,
signaling uncertainty.
Slow Stochastic (20,3,3) has moved back below
its signal line.
Placer Dome bids $ 2 billion for AurionGold
[AOR]
The Vancouver-based gold miner is offering
17.5 shares for every 100 AurionGold, only recently formed by
the merger of Delta Gold and Goldfields. (more)
AOR experienced a large
breakaway gap accompanied by strong volume. It is
interesting to note the increased volume over the week prior to
the announcement.
Early sale of Telstra? [TLS]
The Coalition is moving towards an early sale
of the rest of Telstra, to be put to the Senate. (more)
TLS: Relative Strength (price ratio: xao),
MACD and Chaikin MF still show weakness.
Conclusion
Short-term: Avoid new entries. Maintain tight
stop-losses.
Medium-term: Wait for the All Ords to signal a
reversal.
Long-term: Wait for a bull-trend on the Nasdaq
or S&P 500 (primary cycle).
Colin Twiggs
P.S. We are trying out new Email
software. Please report if you experience any problems with the
trading diary.
Please forward this to your friends and
colleagues.
Back Issues
Click here to access the
Trading Diary Archives.
Back Issues
Access the Trading Diary Archives.