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 .
The Dow recovered 1% to 9617 on very strong
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
Chartcraft's NYSE Bullish % Indicator has given a bull
correction signal, warning investors to adopt defensive
The Nasdaq Composite rallied 1.5% to
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.
A late rally in Intel and
Microsoft lifts stocks. (more)
The All Ordinaries eased 1 point to 3277 on
above-average volume, signaling accumulation.
Chaikin Money Flow continues to rise, signaling
The primary trend is up, secondary trend -
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.
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.
XGO continues to weaken.
Sectors: Tourism &
The XTU index is in the middle of a
bull trend, largely due to the Casinos & Gaming
Relative Strength (price ratio: xao), MACD and Chaikin
Money Flow are strong.
Short-term: Avoid long. Expect a reversal
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).
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