August 7, 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 made more strong gains, rallying 2.2% to
close at 8456.
The primary cycle trend is downwards but a rally above 8806 will
signal a reversal.
The Chartcraft NYSE Bullish % Indicator has given a
bull alert signal, with a reading of 30% (August 6).
The Nasdaq Composite rallied 1.7% to close at 1280. The primary
cycle is in a down-trend. A break above 1355 will signal a
The S&P 500 rallied 17 points to close at 876.
The primary cycle trends downwards. A break above 912 will
signal a reversal.
December gold futures rallied 3% to $US 316.10 an ounce,
benefiting from lower interest rate expectations and increased
prospects of higher inflation and a weaker dollar. (more)
The All Ordinaries rallied 61 points to close at 2999 on average
volume. The primary cycle trends down.
The MACD (26,12,9) has crossed back above its signal line. Twiggs
money flow shows a small bullish divergence.
Aussie dollar strengthens
The Australian dollar rises to 53.65 US cents. (more)
BHP Billiton report a 10% increase in net profit
but warn of volatile trading conditions ahead. (more)
BHP is in a stage 4 decline. Relative strength
(price ratio: xao) and MACD are falling but Twiggs Money Flow
shows a bullish divergence.
Analysts expect annual net profit between $54
and $61 million. (more)
BBG has entered a stage 4 decline. Relative
strength (price ratio: xao) and MACD are declining, while Twiggs
Money Flow is rising on the latest rally.
OST is in a stage 2 up-trend and has just
completed a flag continuation pattern. Relative strength (price
ratio: xao) and MACD are positive, while Twiggs money flow
Short-term: Avoid new entries. Slow Stochastic and MACD are on
opposite sides of their respective signal lines.
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:
Don't shoot until you can see the whites of their
- Old military expression.
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