June 13, 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 again tested the 9500 support level,
closing down 1.2% at 9502 on average volume.
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 closed down 1.5% at
The primary and secondary cycles trend downwards.
The S&P 500 was down 11 points at
Primary and secondary cycles trend downwards.
May retail sales fell 0.9%
against an expected 0.1% rise, with Automobile sales (-2.5%) and
gas station sales (-3.1%) leading the decline.
The All Ordinaries fell to 3265 on normal
Chaikin Money Flow has turned down, signaling
A break below support at 3250 will signal the
start of a primary bear trend.
MACD (26,12,9) and Slow Stochastic (20,3,3)
are below their signal lines.
Further speculation as to the large buyer on
Wednesday night. (more)
Relative Strength (price ratio: xao) and
Chaikin Money Flow are weak, while MACD signals a bullish
Sons of Gwalia is trending downwards.
Chaikin Money Flow shows distribution.
Newcrest Mining shows a bullish MACD,
while Chaikin MF has a bearish divergence. Mixed
Short-term: Avoid long. Expect a reversal at
the 3250 support level.
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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