June 27, 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 rallied 1.6% to close at 9269 on strong
This is a
bear market, with primary and secondary
cycles trending down.
The Nasdaq Composite dipped after a strong
opening but recovered to 1459, posting a 2% gain.
The primary and secondary cycles are in a down-trend.
The S&P 500 rallied 17 points to close at
Primary and secondary cycles trend downwards.
The world's biggest drug-maker plans a $US 10 billion share
buy-back over the next 10 years.
Nike Inc. reports a 28%
increase in fourth-quarter profits due to better inventory
Growth rate up to 6.1%
First quarter GDP grew at
an annualized rate of 6.1%, topping previous estimates of
The All Ordinaries recovered 31 points to close
at 3161 on above-average volume, completing a hook
Primary and secondary cycles are in a bear
Slow Stochastic (20,3,3) has moved above its
Chaikin Money Flow signals distribution.
MIM Holdings [MIM]
MIM expands its gold and copper interests,
acquiring the remaining 49% stake in the Ernest Henry
Relative Strength (price ratio: xao) is improving, Chaikin
Money Flow signals accumulation and the MACD shows a bullish
Note the double top at  and  and the double bottom at 
and , both failing to reach their targets.
BRL Hardy [BRL]
BRL's US joint venture, Pacific Wine Partners, has more than
doubled last year's earnings performance in only 5 months.
Relative Strength (price ratio: xao) and
Chaikin Money Flow are weak, while MACD signals a bullish
Short-term: Avoid long and short - the Slow Stochastic has
moved above its signal line.
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
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