Stock Screens: Directional Movement
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September 10, 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 gained a further 1% to close at 8602 on average volume.
The primary cycle trends down.
The Nasdaq Composite Index rallied 1.2% to close at 1320. The
primary trend is down.
The S&P 500 added 7 points to close at 909. The primary cycle
is in a down-trend.
The Chartcraft NYSE Bullish % Indicator
alert signal is at 46% (September 9).
Chips and automotive stocks lead a mild rally despite heightened
terror alerts. (more)
The All Ordinaries lost 8 points to close at 3061 on
The primary trend is down.
The MACD (26,12,9) and Slow Stochastic (20,3,3) are below their
respective signal lines. Twiggs money flow signals distribution.
QBE Insurance Group [QBE]
The insurance stock experienced a dramatic fall in September last
year, entering a stage 4 down-trend. The 150-day moving average
has now leveled out and the stock is showing signs of building a
stage 1 base. MACD has risen steadily until price encountered
resistance at 7.60 to 7.65.
QBE failed to break through resistance at 7.65 and has retreated
after strong selling at  overcame buying pressure, causing a
downward gap two days later. The stock appears set to test
resistance at 6.25 and 6.05 before we can again look for a
Short-term: Avoid new entries - the All Ords and US markets are
uncertain. The Slow Stochastic and MACD are below 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:
You can lead a
horse to water, but you can't make him drink - Anon.
You can lead a man to knowledge, but you
can't make him think - Jerri Shinnaman.
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