June 7, 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 to 9472 before rallying back to
9589 on very strong volume. Another successful test of the 9500
A break below 9500 will signal a primary bear-trend. The
secondary cycle trends downwards.
Chartcraft's NYSE Bullish % Indicator has given a bull
correction signal, warning investors to adopt defensive
After a weak opening the Nasdaq Composite
rallied during the day but still closed 1.25% down at
The primary and secondary cycles continue downwards.
The S&P 500 closed 2 points down at
Primary and secondary cycles trend downwards.
Unexpected fall in unemployment
Unemployment levels fell to
5.8% from a high of 6%. (more)
Intel down 19%
Intel and AMD lead a general
tech stock decline after Intel's revenue downgrade.
The All Ords recovered from a sharp morning fall
to close 3 points down at 3296 on average volume.
MACD (26,12,9) and Slow Stochastic (20,3,3) are
below their signal lines.
The announcement of a share buy-back was
favorably received by the market. (more)
RMD closed up at $4.76 with bullish
divergences on MACD and Chaikin MF, while Relative Strength
(price ratio: xao) is still weak.
The directors of Australian
Oil & Gas Corp. intend to recommend that shareholders
accept the $2.50 per share takeover offer by Texas-based Parker
AOG closed at $2.65.
Village Roadshow [VRL]
The cinema group announces
plans to scrap dividends "for an extended period of time".
VRL fell to $1.45 after a bearish divergence on Chaikin
MF and weak Relative Strength (price ratio:
Short-term: Avoid long. Maintain tight
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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