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October 14, 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 up slightly at 7877 on low volume. Buying pressure
appears to be waning - the true test this week will be whether
the index can carry above the 8000 resistance level. The primary
trend is down.
The Nasdaq Composite Index gained 10 points to close at 1220. The
primary trend is down.
The S&P 500 gained 6 points to close at 841. Immediate
resistance is at 855 and the index will complete a
if it rises above 965. The primary trend is
The Chartcraft NYSE Bullish % Indicator
a bear confirmed signal at 26% (October 11).
A quiet day on Wall Street
The absence of a sell-off, after two strong up days. Some see
this as a good sign for the next few weeks. (more)
New York: Spot gold last traded at $US 317.40, up 130 cents.
The All Ordinaries broke through initial resistance at 2909,
closing up 33 points on light volume. The primary trend is
Slow Stochastic (20,3,3) is above its signal line; MACD
(26,12,9) is below. Twiggs money flow signals a bullish
Sons of Gwalia [SGW]
A lot has happened since
when SGW was last covered.
The stock has formed a bullish
while in a stage
down-trend. Relative strength (price ratio: xao) has been
falling for the last 16 months but may be showing early signs
of a reversal, forming a higher low.
MACD shows a bullish divergence. Twiggs money flow shows a
bullish divergence [+] followed by strong accumulation [$] with
TMF holding above zero.
On the equivolume chart SGW appears to be forming an
with resistance at 5.00 after equal
highs at  and . Volume on the latest rally  is a bit
thin and some heavier volume, as in the previous rally ,
would be reassuring.
A break above 5.00 on strong volume will be a bull signal,
while a break below 4.35 will be a bearish continuation signal.
Short-term: Avoid new entries. The 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:
mortals know what's happening now,
the gods know what the future holds
because they are totally enlightened.
Wise men are aware of future things
just about to happen.
- C.P. Cavafy, a poem based on lines by
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