July 25, 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 held on to yesterday's gains closing at 8186. The 8000
level may again act as support. Primary and secondary cycles
The Chartcraft NYSE Bullish % Indicator has a
reading of 24% (July 24). See
Bullish % Index for more details.
The Nasdaq Composite slipped, closing 3.9% down at 1240.
Primary and secondary cycles are in a down-trend.
The S&P 500 closed down 0.5% at 838.
Primary and secondary cycles trend downwards.
AOL Time Warner
Stock in the media giant hit a 4-year low as the SEC probe into
accounting practices continues. (more)
Chip stocks slide
Taiwan Semiconductor, the largest chip-maker, cuts new capital
expenditure as it faces a slow recovery. (more)
The All Ordinaries recovered 26 points to close at 2991 on strong
The primary cycle and secondary cycles trend down. The next
support level is 2828, from September 2001
Slow Stochastic (20,3,3) has joined the MACD (26,12,9), crossing
below its signal line. Exponentially-smoothed money flow signals
Macquarie Bank [MBL]
The bank's growth strategy is floundering in a weak market.
Relative strength (price ratio: xao), MACD and
exponentially-smoothed money flow are all weak.
Publishing and Broadcasting Limited [PBL]
The PBL monthly chart shows a large falling wedge, a bullish
signal, while relative strength (price ratio: xao) appears to
be holding at current levels.
The weekly chart shows a smaller symmetrical triangle. MACD
The daily chart shows a short-term double bottom but with
weak volume confirmation - Twiggs Money Flow has turned down
Short-term: Short in selected areas. The Slow Stochastic and
MACD are below their respective signal lines. Keep stops
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:
Nothing is illegal if a hundred businessmen decide to do
it - Andrew Young.
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