The newsletter over the holiday season will be shorter, with fewer stocks covered
as we take a break from the pressures of the market.
December 11, 2002
If the next rally fails to take out the high from December 2, we may face a re-test of the 7500 and 7200 support levels; equal highs (August 22 and December 2) in a down-trend are a bearish signal.
The primary trend is down. It will reverse up if the average rises above 9130.
The Nasdaq Composite gained 0.4% to close at 1396.
The primary trend is up.
The S&P 500 closed unchanged at 904. The index formed two equal highs (August 22 and December 2) and appears set to test the October low of 768.
The primary trend is down.
The Chartcraft NYSE Bullish % Indicator signals a bull alert at 50% (December 10).
The consumer products manufacturer raised its earnings forecast for the quarter, citing strong sales in its health care business and in overseas markets. (more)
New York: Spot gold gained 170 cents to $US 324.90.
MACD (26,12,9) and Slow Stochastic (20,3,3) are below their signal lines; Twiggs money flow signals distribution.
Last covered on September 3.
After a huge spike in 2001, HDR continued in an upward trend until a false break above the previous high at , accompanied by a bearish divergence on Twiggs money flow and MACD and falling Relative Strength (price ratio: xao). The stock started a strong down-trend after breaking below the trend channel but is now forming a sideways congestion pattern.
A false break of resistance at  is an early indication that the trend may reverse, reinforced by the gap at  on strong volume. The breakout from the trend channel occurred at  and was followed by a creeping down-trend before a fast break at  with strong volume. The trend continued down to  but on far lighter volume and the counter-trend has climbed back to re-test resistance at 0.58, the high of the previous up-swing. The resistance level appears to be holding, with price fluctuating in a narrow band.
A break below 0.52 will be a strong bear signal. A break above 0.58 would be mildly bullish.
For further guidance see Understanding the Trading Diary.
When he thinks he's the smartest man in the world,
he puts himself in a class we call fools.
- Roy Longstreet: Viewpoints of a Commodity Trader.