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Trading Diary
May 29, 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
The Dow weakened further, closing at 9923 on average volume. 
The secondary down-trend continues but will have to break through the 9800 and 9500 support levels to start a primary bear-trend.

The Nasdaq Composite fell 1.6% to close at 1624.
The primary and secondary trends are down.

The S&P 500 closed down 7 points at 1067.
The primary and secondary cycles are trending downwards.

 
Brewing giant
South African Breweries plc is set to buy Miller Brewing Co. from Phillip Morris, to become the world's second-largest brewer. (more)
 
US dollar falls against euro
The US dollar reached a 14-month low against the euro as confidence in a rapid US recovery wanes. (more)
 
Gold outlook
Despite a bout of selling, June gold futures rallied to close above $US 325 per ounce. (more)
 
ASX Australia
The All Ords closed down 5 points at 3333 on strong volume. 
The primary trend is up, secondary trend - down. A break above 3370 would complete an inverted head and shoulders pattern.
Chaikin Money Flow signals accumulation.
Slow Stochastic (20,3,3) and MACD are above their respective signal lines.


 
Dollar rises
The Australian dollar reaches new 16-month highs, closing at 56.38 US cents. (more)
 
AurionGold makes further gains [AOR]
AurionGold reached $5.00 before falling back to close at $4.77. The weak close caused a dip in the Chaikin Money Flow index.


 
Basin Minerals [ILU]
Shares in the mineral sands explorer soared to $2.15 after a takeover bid by rival Iluka Resources. (more)
Relative Strength (price ratio: xao) and MACD are strong, with Chaikin MF showing steady accumulation over the last 2 months. BMS breakout above $1.20 resistance took place last week.


 

Tower
Tower is to investigate shifting its domicile to Australia, predicting a market re-rating after cost savings and growth initiatives. (more)
Relative Strength (price ratio: xao) and MACD are weak, while Chaikin MF has crossed above zero, signaling accumulation.


 





Conclusion
 
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 reversal.
Long-term: Wait for a bull-trend on the Nasdaq or S&P 500 (primary cycle).

Colin Twiggs



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