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November 27, 2003
These extracts from my daily trading diary are
for educational purposes and should not be interpreted as
investment advice. Full terms and conditions can be found at
of Use .
Having failed to break through initial resistance at 3206, the
All Ordinaries closed 5 points lower at 3194. Higher volume
signals commitment from sellers.
The intermediate trend is down.
MACD (26,12,9) is below its signal line; Slow Stochastic (20,3,3)
is above its signal line.
Short-term: Bullish if the All Ords rises above 3212 (the
November 12 low). Bearish below Wednesday's low of 3194.
XAO is below the long-term trendline, signaling
The primary trend is up but will reverse if there is a fall below
3160 (the October 1 low).
Twiggs Money Flow (100) signals distribution after a bearish
.Intermediate term: Bullish above 3250. Bearish below
Long-term: Neutral. Bearish below 3160.
Last covered on February 12, 2003
Strength (xao) fell to a 2-year low, with a pull-back respecting
resistance on the RS chart, while price has penetrated the 30.00
Twiggs Money Flow (100) signals strong distribution.
A pull-back to test the new resistance level at 30.00 may present
opportunities to go short. A dry-up of volume and volatility on
the pull-back will be a bearish sign. A correction of short
duration would provide further confirmation.
Note the earlier sell-off on huge volume at . This was
followed by a second day with just as much volume but a far
narrower range at , signaling strong opposition from buyers.
There is always someone who thinks they can pick the bottom.
Property Trusts [XPJ]
XPJ has rallied after testing support at 14.00. Twiggs Money Flow
(100) continues to signal accumulation.
Interestingly, Relative Strength (xao) has risen above
recent highs, signaling strong performance relative to other
A pull-back that respects the new RS support level would confirm
that investors are increasing their allocation in this sector.
The crowd, the world, and sometimes even the
grave, step aside for the man who knows where he is going,
but pushes the aimless drifter aside.
~ Roman proverb.
We are now in
the final stages of the setup.
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