July 5, 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 rocketed up 3.5% to close at 9379 on
very low volumes. If the rally continues, a break above 9435 will
complete a double bottom pattern with a target of 10035.
This is a
bear market, with primary and secondary cycles trending
The Nasdaq Composite rallied almost 5% to
The primary and secondary cycles are in a down-trend.
The S&P 500 gained 35 points to 989.
Primary and secondary cycles trend downwards.
Technology stocks rallied strongly, with Intel
(up 10%) and other chip stocks leading the charge. (more)
The All Ordinaries see-sawed before closing up
7 points at 3164 on low volume.
A break 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) has crossed above its
Money Flow shows a slight bullish divergence.
AurionGold rejects bid [AOR]
AurionGold rejected the Placer Dome bid
because of a 25% fall in the stock price of the Canadian
AOR has made a correction
(secondary cycle) back towards the long-term moving
MACD and Relative Strength (price ratio: xao)
are weakening but exponentially-smoothed Money Flow continues
to signal accumulation.
PMP has encountered resistance at 93 cents
for several months. Exponentially-smoothed Money Flow and
Relative Strength (price ratio: xao) are strong but MACD
shows a bullish divergence.
SIG appears to be forming a triangle top
after a strong up-trend. The likely direction of the
breakout is uncertain but the exponentially-smoothed Money
Flow signals strong accumulation. Relative Strength (price
ratio: xao) and MACD are improving.
changes are highlighted in red.
Property Trusts [XXJ]
- stage 3
[XTJ] - stage 4
(RS is rising)
The ASX has ceased to provide the old ASX indices.
Sectors: Relative Strength
A stock screen of equities using % Price Move (1 month:
+10%, 1 year: +30%) is dominated by Gold Explorers
(Producers are notably absent). Oil & Gas Explorers,
Mineral Sands and Diversified Media stocks are also
Short-term: No long or short - the Slow Stochastic is
above, and MACD below, their respective 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).
Access the Trading Diary Archives.