July 3, 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 9000 support level
before rallying to close 0.5% up at 9054 on above-average
This is a
bear market, with primary and secondary cycles trending
The Nasdaq Composite gained 1.6% to close at
The primary and secondary cycles are in a down-trend.
The S&P 500 rose 5 points to 953.
Primary and secondary cycles trend downwards.
IDT bids for WorldCom
Smaller telecom player IDT makes a $US 5
billion bid for MCI and other assets of WorldCom. (more)
The retailer's shares surge 9% as a heat wave boosts sales of
I spoke with Rod Holden from the Gold Report
yesterday. He is still bullish on gold and believes that it will
rally strongly in 2 to 3 months.
Vivendi Universal names new CEO
Jean-Rene Fourtou says his first task is to avoid a "liquidity
The All Ordinaries finished 26 points lower at 3133 on average
Primary and secondary cycles are in a bear trend.
Slow Stochastic (20,3,3) has moved back below its signal
Exponentially-smoothed Money Flow is
below zero, signaling distribution.
Dollar dips below 56 US cents
The dip was sparked by speculation that NAB is preparing to
acquire troubled UK bank, Abbey National. (more)
The Reserve Bank leaves interest rates
National Foods [NFD]
Speculation that New Zealand-based Fonterra
is preparing for a takeover bid pushed NFD to a record
Relative Strength (price ratio: xao) and
MACD are bullish while exponentially-smoothed Money Flow is improving.
Australian Gas Light [AGL]
AGL fell sharply on resumption of trading
but made a partial recovery, closing near the day's high.
hammer signals a reversal.
A reader sent me a chart of AGL
depicting channel lines. I am not a big user of channel
lines myself but I must admit that they have worked very
well on AGL over the last 12 months.
ALS has broken through resistance at $3.90 and is testing
further resistance levels at $3.95 to $4.00. Relative
Strength (price ratio: xao) and exponentially-smoothed
Money Flow are strong, while MACD is bullish. Caution:
volumes are low.
Short-term: Short - the Slow Stochastic and MACD are
below their signal lines.
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).
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