May 28, 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 below 10000 to close at 9981 on low
volume, down by 1.2%. The next support level is at 9800.
The primary trend is up, secondary - down.
The Nasdaq Composite held up better, closing
down 9 points at 1652.
The primary and secondary trends are down.
The S&P 500 fell by 9 points to
The primary and secondary trends slope downwards.
Real disposable incomes decline
Personal incomes increased by
0.3% in April but prices rise 0.4%. (more)
The All Ords closed up 3 points at 3338 on
Chaikin Money Flow is rising, signaling
Slow Stochastic (20,3,3) crossed back to join
MACD above its signal line.
AurionGold rises as Placer falls [AOR]
AurionGold continued to rise following the
takeover offer, but stock of the bidder Placer Dome fell 7% on
the Canadian Market after criticism that the bid lacked value.
After the large
breakaway gap on Monday, the stock tested support before
rallying to close at $4.60.
Shares of Newcrest made a new high, on
speculation that it will be the next takeover target.
Relative Strength (price ratio: xao) is strong
but MACD and Chaikin MF show weakness.
Unenthusiastic market response to FXJ
management restructure. (more)
Relative Strength (price ratio: xao) and MACD
are weak. Chaikin MF has failed to cross into positive
territory after a bullish divergence.
Short-term: Long - Stochastic and MACD are above
their signal lines. Maintain tight stop-losses.
Medium-term: Wait for the All Ords to signal a
Long-term: Wait for a bull-trend on the Nasdaq
or S&P 500 (primary cycle).
P.S. We are trying out new Email
software. Please report if you experience any problems with the
Please forward this to your friends and
Access the Trading Diary Archives.