June 17, 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 commenced a strong rally, closing up
2.25% at 9687 on above-average volume.
The primary bear-trend has made a faltering start, closing back
above the 9500 support level. But, unless the rally carries above
10400, the down-trend continues.
Chartcraft's NYSE Bullish % Indicator has given a bull
correction signal, warning investors to adopt defensive
The Nasdaq Composite rallied more than 3% to
1553. Resistance is at 1760.
The primary and secondary cycles trend downwards.
The S&P 500 rose 29 points to 1036.
Resistance is at 1107.
Primary and secondary cycles trend downwards.
McDonalds profits from weak dollar
MCD raises its second-quarter
earnings outlook after strong European sales and favorable
exchange rates. (more)
Tech stocks boost the market
Tech stocks lead the rally
with AMD up 12.5% and Intel gaining 6%. (more)
The All Ordinaries staged a late rally to close
up 5 points to 3251. Volume was low but should improve on
A break below the 3250 support level will signal
the start of a primary bear trend.
Chaikin Money Flow is below zero, signaling
MACD (26,12,9) and Slow Stochastic (20,3,3)
are below their signal lines.
Foodland proceeds with acquisition
Foodland will resume trading on Tuesday
after settling the $598 million purchase price for
Woolworths NZ. (more)
Moody's downgrades telcos [TEL]
Moody's Investor Services downgraded the
debt rating of Telecom NZ, with SingTel under review.
TEL has broken above resistance at $4.50
on reasonable volume. Relative Strength (price ratio:
xao) and MACD are positive but Chaikin Money Flow shows a
The ASX 200 Telecom index (XTJ) is in a
bear-trend with weak Relative Strength (price ratio: xao)
and declining MAs. But MACD and Chaikin Money Flow show
The primary bull-trend continues.
Short-term: Wait for signals from the Detrended Price
Oscillator and Chaikin MF.
Short-term: Avoid long and short. The market
rallied at the 3250 support level but there are no positive
signals from the MACD and Slow Stochastic.
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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