August 19, 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 strongly to break through the
8800 resistance level and close at 8990 on average volume.
Primary cycle is in a down-trend.
The Chartcraft NYSE Bullish % Indicator bull
alert signal has risen to 38% (August 16).
The Nasdaq Composite increased 2.5% to close at 1394.
The primary cycle is in a down-trend.
The S&P 500 rallied 22 points to close at 950. The primary
cycle is in a down-trend.
SEC lists 12 problem stocks
The following companies have failed to certify their accounts or
asked for an extension of time:
Adams Resources & Energy
Gemstar (partly owned by Newscorp)
McLeod USA, and
AOL Time Warner has qualified their certification to the extent
of $US 49 million. (more)
The second largest home improvement retailer in the US report a
40%-plus increase in EPS for the second quarter. (more)
The All Ordinaries rose sharply after the opening but then eased
slightly in later trading to close 15 points up at 3099. Weak
volume signals a lack of commitment from buyers. The primary
cycle trends down.
The Stochastic (20,3,3) and MACD (26,12,9) are above their signal
lines. Twiggs money flow is positive.
Westpac step into infrastructure [WBC]
Westpac have acquired a controlling stake in Hastings Fund
Management, managers of Australian Infrastructure Fund.
WBC is in a stage 4 top having broken down from a triangle
pattern. Relative strength (price ratio: xao) is strong but MACD
is weak and Twiggs money flow signals distribution.
TAB Queensland [TQL]
A strong second half enabled
TQL to report a 25% increase in annual earnings.(more)
TQL is in a strong up-trend and has reached a new high. Relative
strength (price ratio: xao) is strong and Twiggs money flow has
completed a bullish signal [$], with a trough respecting the zero
MACD paints a similar picture with the latest trough respecting
Short-term: Long. Slow Stochastic and MACD are above 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:
It is the big swing that
makes the big money for you.
- Edwin Lefevre.
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