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Trading Diary
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 .




USA
Markets were closed for Independence Day holiday.
 
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)
 
AMD
Chip-maker AMD cut second-quarter sales forecasts for the second time. (more)
  
ASX Australia
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 trend.
Slow Stochastic (20,3,3) and MACD (26,12,9) are below their signal lines. 
Exponentially-smoothed Money Flow shows a slight bullish divergence.


 

AMP [AMP]
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 is weakening.


 
Alesco [ALS]
ALS has failed to break through resistance at $3.95 on the first attempt. 


 





Conclusion
 
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).
 

Colin Twiggs

 




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