July 4, 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 .
Markets were closed for Independence Day
Three killed at El Al
Three people were killed when a gunman opened
fire at an El Al Airlines ticket counter at Los Angeles
International Airport. (more)
Chip-maker AMD cut second-quarter sales forecasts for the second
The All Ordinaries gained 24 points to close at
3157 on average volume.
A rise above 31.80 would complete a short
double-bottom pattern with a target of 32.30.
Primary and secondary cycles are in a bear
Slow Stochastic (20,3,3) and MACD (26,12,9) are
below their signal lines.
Money Flow shows a slight bullish divergence.
AMP rises on speculation that it may be an
NAB acquisition target. (more)
The stock has completed a
short double-bottom pattern with a target of $16.70.
MACD shows a bullish divergence, while
Relative Strength (price ratio: xao) and exponentially-smoothed
Money Flow are still weak.
National Foods [NFD]
NFD gapped up to a new high but on lower
volume. (Readers note: traders often move their stop-losses
up to the bottom of the trading gap as there is a high
probability that a breakaway gap will not be closed).
Relative Strength (price ratio: xao) and
MACD are bullish but exponentially-smoothed Money Flow did
not like the weak close.
Australian Gas Light [AGL]
AGL bounced back above the channel line
depicted yesterday. Exponentially-smoothed Money Flow has
moved into positive territory, signaling accumulation.
Relative Strength (price ratio: xao) is improving, but MACD
ALS has failed to break through resistance at $3.95 on the
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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