Incredible Charts version 188.8.131.52 is now available
August 28, 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 closed down 1.5% at 8694 on normal volume. The secondary
rally may be ending, while the primary cycle is in a
The Nasdaq Composite gapped downwards, falling 2.5% to close at
1314. The secondary rally may be reversing. The primary cycle
is in a down-trend.
The S&P 500 lost 17 points to close at 917. The primary
trend is down, with a secondary correction.
The Chartcraft NYSE Bullish % Indicator bull
alert signal is at 46% (August 27).
Chip and network stocks down
Intel CEO Craig Barret's cautious outlook on the computer
industry weighs heavily on the market. (more)
The All Ordinaries eased after the morning session to close down
21 points at 3090 on normal volume. The primary trend is down.
The Stochastic (20,3,3) is below its signal line. Twiggs money
flow signals distribution.
National Australia Bank [NAB]
NAB closed its foray into the US market with the sale of its last
mortgage servicing rights to Washington Mutual, at a loss of $104
NAB has been wedging up for the past year, a bullish signal, with
relative strength (price ratio: xao) rising. MACD and Twiggs
money flow are neutral.
QBE Insurance reported a 6% drop in net profit for the half-year
to 30 June and predict 10% to 15 % growth for next year.
The stock has been in a stage 4 decline since September last
year. Twiggs money flow shows a bullish divergence while MACD is
RMD has built a broad base after a
lengthy down-trend. The 150-day moving average has leveled out
while relative strength (price ratio: xao) is recovering. Twiggs
money flow and MACD have completed bullish divergences.
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:
It is not
necessary to get everything right - but it is necessary to get
the right things right.
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