July 8, 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 retreated more than 1% to close at 9274
on above-average volume, failing to complete the double bottom
This is a
bear market, with primary and secondary cycles trending
The Nasdaq Composite fell almost 3% to
The primary and secondary cycles are in a down-trend.
The S&P 500 eased 12 points to close at
Primary and secondary cycles trend downwards.
The drug-maker admits to recording $US 12.4
billion in revenue that did not belong to it. Net income is not
EBay bids for PayPal
to buy PayPal, the online payment service, for $US 1.5
The All Ordinaries rallied to 31.98 before
retreating to 31.81 on low volume.
The break above 31.80 completes a short
double-bottom pattern with a target of 32.30.
Primary cycle is in a bear trend, secondary cycle has completed a reversal.
MACD (26,12,9) has joined Slow Stochastic
(20,3,3) above its signal line.
Money Flow shows a slight bullish divergence.
More evidence has emerged that NAB has Abbey
National in its sights. (more)
Relative Strength (price
ratio: xao) is positive but exponentially-smoothed Money Flow
signals distribution and MACD shows a bearish
Newcrest CFO quits [NCM]
CFO Gary Scanlan quits the gold producer
with immediate effect. (more)
Relative Strength (price ratio: xao) and
MACD are weakening while exponentially-smoothed Money Flow
Short-term: We have a signal to go long - the Slow
Stochastic and MACD are above their respective signal
lines. Exercise extreme caution because of subsequent
weakness in the US market.
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).
Quote for the Day
"Decisions in America are based solely
on how much money is made, and not on the question of how
much health, morals or the environment suffer.
The most absurd thing is that, in
defecting from Czechoslovakia (in 1975), I only exchanged
one system that suppresses freedom of opinion for
another." Martina Navratilova
(translated from Die Ziet)
Access the Trading Diary Archives.