July 23, 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 a further 1% to close at 7702. The next major
support level is 7379, from July 1998. We are now in the third
phase of the
. Primary and secondary cycles trend downwards.
Telecom stocks continued their slide, with the Nasdaq Composite
losing more than 4% to close at 1229. The next major support
level is 1194, from July 1997. Primary and secondary cycles are
in a down-trend.
The S&P 500 lost a further 22 points to close at 797. The
next support level is 733, from April 1997.
Primary and secondary cycles trend downwards.
Banks face Enron probe
Citigroup and JP Morgan Chase face allegations that they helped
to hide the extent of Enron's debt. (more)
Amazon narrows loss
Amazon.com reported a second-quarter loss of 25 cents per share
after all charges, compared to 47 cents a year earlier.
Dollar rises, gold sinks
The dollar rose to its highest level in 2 weeks while August gold
futures fell to $US 312.60 (more)
The All Ordinaries recovered from a sharp drop in the morning to
close 1 point down at 3034 on strong volume.
The primary cycle and secondary cycle trend down, while strong
support is shaping between 3000 and 3035.
Slow Stochastic (20,3,3) is above its signal line while MACD
(26,12,9) is below. Exponentially-smoothed money flow signals
Fosters share buy-back [FGL]
Fosters Group are to buy back 2.5% of their ordinary shares.
Relative strength (price ratio: xao) is improving but MACD and
exponentially-smoothed money flow are weak.
Harvey Norman [HVN]
Fourth-quarter same-store sales were up 7.4% on a year earlier.
The descending triangle is a bearish signal. Relative Strength
(price ratio: xao) is weak, while exponentially-smoothed money
flow and MACD are improving.
Iluka Resources [ILU]
Iluka report a 16% increase in their Murray Basin mineral
sands resources, after a fall in second-quarter production.
Relative Strength (price ratio: xao) is positive but
exponentially-smoothed money flow and MACD are weakening.
Short-term: Avoid new entries. The Slow Stochastic is above,
and MACD 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:
CNN/Gallop Poll conducted a survey over this past weekend,
asking who was to blame for individual stock losses.
No surprise. Only two percent accepted responsibility for
their own actions.
God Bless America!
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