Home Site Map About Us Privacy Policy Advertise (pdf) Contact Us
 
 
sitesearch
 


Trading Diary
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 .




USA
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 strategies. 

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)
 
ASX Australia
The All Ordinaries staged a late rally to close up 5 points to 3251. Volume was low but should improve on Tuesday. 
A break below the 3250 support level will signal the start of a primary bear trend.
Chaikin Money Flow is below zero, signaling distribution.
MACD (26,12,9) and Slow Stochastic (20,3,3) are below their signal lines.


 

Foodland proceeds with acquisition [FOA]
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. (more)
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 bearish divergence.


 

Sectors: Telecom
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 bullish divergences.


 
Sectors: Gold
The primary bull-trend continues. Short-term: Wait for signals from the Detrended Price Oscillator and Chaikin MF.


 





Conclusion
 
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 reversal.
Long-term: Wait for a bull-trend on the Nasdaq or S&P 500 (primary cycle).
 

Colin Twiggs

 
Please forward this to your friends and colleagues.




Back Issues
Click here to access the Trading Diary Archives.



Perfect Your Market Timing
Learn how to manage your market risk.





The weekly Trading Diary offers fundamental analysis of the
economy and technical analysis of major market indices,
gold, crude oil and forex.
The monthly What's New newsletter covers new articles
on Trading and the Economy, as well as new software updates.




Back Issues
Access the Trading Diary Archives.





 
Top of Page