July 9, 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 fell another 1.9% to close at 9096 on
This is a
bear market, with primary and secondary cycles trending
The Nasdaq Composite fell 1.74% to close at
The primary and secondary cycles are in a down-trend.
The S&P 500 lost 24 points to close at
Primary and secondary cycles trend downwards.
Wyeth leads drug sector lower
Safety concerns over the group's
hormone-replacement drug caused a fall to a 2-year low.
August futures rose
$US 4 to close at $US 316.50 per ounce. (more)
The All Ordinaries closed up 7 points at 3205
on average volume. The completed double-bottom pattern has a
target of 32.30.
The primary cycle is in a bear trend,
secondary cycle has completed a
MACD (26,12,9) and Slow Stochastic (20,3,3) are
above their signal lines.
Money Flow has returned to positive territory.
Business confidence falls
The NAB monthly survey shows a sharp fall in
business confidence. (more)
Iron ore miner Portman has concluded an important native title
agreement that will allow it to double production. (more)
Relative Strength (price
ratio: xao) and MACD are improving, while exponentially-smoothed
Money Flow signals accumulation.
AOR is one of the few gold stocks that
continues to signal accumulation (on exponentially-smoothed Money Flow) during the current
Relative Strength (price ratio: xao) and MACD
are still weak.
Smorgon Steel [SSX]
SSX has signaled strong accumulation (on
exponentially-smoothed Money Flow) over the last year.
Relative Strength (price ratio: xao) and
MACD are improving.
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 the weakness in US markets.
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
Thought for the Day
"The trend is your friend until it
bends near the end" - Ed Seykota.
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