June 3, 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 2% to 9709 on normal
volume, showing that buyers have withdrawn from the
The secondary down-trend has broken through the 9800 support
level to start a primary bear-trend.
The Nasdaq Composite dropped more than 3% to
close at 1562.
The primary and secondary trends continue downwards.
The S&P 500 made an 8-month low, falling
2.5% to close at 1040. Remember, the pattern completed on
May 6th has a target of 960.
The primary and secondary trends are down.
Tyco chief quits
Dennis Kozlowski, under
investigation for evading New York sales taxes, has quit as
chairman and CEO of the large manufacturing conglomerate.
Manufacturing index 2-year high
The Institute of Supply
Management manufacturing index rose to 55.7% in May, up from
53.9% in April. (more)
The owner of the Home
Shopping Network is making a bid to become the world's
largest electronic-commerce company. (more)
The All Ords rallied, only to lose most of its
gains in an afternoon sell-off, to close at 3328 on reasonable
Chaikin Money Flow continues to signal
Slow Stochastic (20,3,3) is below its signal
line, MACD (26,12,9) above.
The Australian dollar reached 57 US cents
for the first time in more than a year. (more)
An interest rate rise of up to 0.5% is
expected from the Reserve Bank meeting today. (more)
PBL axes Acxiom [PBL]
Broadcasting has kicked off the rationalization of its
investment portfolio with the sale of its 50% stake in Acxiom,
back to the US parent. (more)
Relative Strength (price ratio: xao) and MACD
are weak but Chaikin MF has risen impressively over the last
few weeks to cross into positive territory.
Shareholders in The Australian Gas Light
Company will meet on 3 July to complete its conversion to a
company and lift the 5% shareholding limit imposed by its 1837
Chaikin MF shows accumulation while MACD looks
bearish. Relative Strength (price ratio: xao) is improving and
the 30-week weighted MA slopes upwards.
Short-term: Avoid long - Stochastic is below its
signal line. 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).
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