Trading Diary
June 12, 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 recovered 1% to 9617 on very strong volume.
Another successful test of the 9500 - 9600 support level. A break below this level will complete a broad head and shoulders pattern and signal a primary bear-trend.
Chartcraft's NYSE Bullish % Indicator has given a bull correction signal, warning investors to adopt defensive strategies. 

The Nasdaq Composite rallied 1.5% to 1519.
The primary and secondary cycles trend downwards.

The S&P 500 rose 7 points to 1020.
Primary and secondary cycles trend downwards.

 
Proctor & Gamble
The makers of Tide and Pampers raised their fourth-quarter earnings forecasts. (more)
 
Late rally
A late rally in Intel and Microsoft lifts stocks. (more)
 
ASX Australia
The All Ordinaries eased 1 point to 3277 on above-average volume, signaling accumulation.
Chaikin Money Flow continues to rise, signaling accumulation.
The primary trend is up, secondary trend - down.
MACD (26,12,9) and Slow Stochastic (20,3,3) are below their signal lines.


 
Court injunction against Foodland [FOA]
Competitor, Foodstuffs (Auckland) Ltd, last night obtained an interim order preventing Perth-based Foodland from taking further action in it's acquisition of Woolworths New Zealand. (more)
FOA  shows strong Relative Strength (price ratio: xao), Chaikin Money Flow shows accumulation, while MACD signals a bearish divergence.


 

Tabcorp [TAH]
The Victorian government doubled the limit on individual shareholding to 10% and raised the restriction on foreign ownership to 40%. (more)
TAH has broken out above resistance at $12.50. Relative Strength (price ratio: xao) is strong, while MACD and Chaikin Money Flow have recovered.


 

Gold
XGO continues to weaken.
 


Sectors: Tourism & Leisure
 The XTU index is in the middle of a bull trend, largely due to the Casinos & Gaming sector.
Relative Strength (price ratio: xao), MACD and Chaikin Money Flow are strong.


 





Conclusion
 
Short-term: Avoid long. Expect a reversal shortly.
Medium-term: Wait for the All Ords to signal a secondary cycle reversal.
Long-term: Wait for a bull-trend on the Nasdaq or S&P 500 (primary cycle).
 

Colin Twiggs

 
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