July 11, 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 rallied in the afternoon to close only
slightly down at 8801 on very high volume.
This is a
bear market, with primary and secondary cycles trending
The Nasdaq Composite rallied more than 2% to
close at 1374.
The primary and secondary cycles are in a down-trend.
The S&P 500 gained 7 points to close at
Primary and secondary cycles trend downwards.
Dell Computer Corporation increased their sales and earnings
forecasts for the second quarter, causing the stock to rise
more than 7%. (more)
The SEC is investigating whether
Bristol-Myers Squibb misled investors about the company's revenue
The All Ordinaries closed down 33 points at 3142 on average
The primary cycle is in a bear trend, secondary
cycle has completed a reversal.
Slow Stochastic (20,3,3) has crossed to below its signal
Exponentially-smoothed Money Flow signals distribution.
Health Care hammered [CSL]
A profit warning by Compumedics and the failure of Amrad's
hepatitis drug trial cause a crisis of confidence in the sector.
Sonic Healthcare [SHL] has weak Relative Strength (price ratio:
xao) and MACD but exponentially-smoothed Money Flow signals
I managed to combine a news story on Peptech with a chart of
Peplin Biotech - one of the hazards of working at 6.00 a.m.
PTD is in a stage
decline with weakening Relative Strength (price ratio: xao)
and exponentially-smoothed Money Flow, but MACD shows a bullish
Peplin Biotech (PEP), on the other hand, shows improving
Relative Strength (price ratio: xao) and MACD, while
exponentially-smoothed Money Flow has swung to accumulation.
Croesus Mining NL [CRS]
The Kalgoorlie gold miner reported a record profit of $15
Relative Strength (price ratio: xao) and MACD are weak but
exponentially-smoothed Money Flow signals strong accumulation.
Short-term: Avoid new entries. The Slow Stochastic is below
its signal line.
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:
When the supermarket has a sale, buyers rush in. When the
stock market has a sale, buyers run away.
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