August 20, 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 .
9000 is shaping as another resistance level,
with the Dow retreating 1.3% to close at 8872 on average
Primary cycle is in a down-trend.
The Chartcraft NYSE Bullish % Indicator bull
alert signal has risen to 40% (August 19).
The Nasdaq Composite formed an inside day, closing down by a
similar % at 1376.
The primary cycle is in a down-trend.
The S&P 500 corrected 13 points to close at 937. The
primary cycle is in a down-trend.
Qwest sells phone books
The troubled telecom has sold its yellow pages directory
publishing unit for $US 7 billion. (more)
Phone stocks down
Telecom stocks traded lower after a string of analyst downgrades.
The All Ordinaries rose steeply in the morning and then held
those levels until the close, closing up 27 points at 3126 on
The primary cycle trends down.
The Stochastic (20,3,3) and MACD (26,12,9) are above their signal
lines. Twiggs money flow has
the zero line.
Southcorp - a good vintage
SRP posted a stronger-than-expected 13.4% increase in earnings
per share (before amortization and profit on sale of business
SRP has been in a stage 4 decline for the past year. Relative
strength (price ratio: xao) is weak but MACD and Twiggs money
flow show bullish divergences, with TMF rising strongly above
spin-off posted a 70% increase in earnings per
OST reached a record high of $1.70 with relative
strength (price ratio: xao) rising.
MACD and Twiggs money flow have completed
bullish signals [$], with troughs respecting the zero
Insurance Australia Group [IAG]
After breaking down from a large ascending
triangle IAG has rallied to test resistance at 3.15. (more)
Relative strength (price ratio: xao) is neutral,
while MACD shows a bullish divergence and Twiggs money flow
Short-term: Wait for the market to digest the
poor US performance before taking any long. Slow Stochastic and MACD are above their respective
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:
Even if you're on the right
track, you'll get run over if you just sit there.
- Will Rogers.
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