Trading Diary
May 22, 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 .
USA
The Dow recovered 0.5% to 10157 on normal
volume. The inside day shows uncertainty.
The primary trend is down, secondary - up and
short trend - up.
The Nasdaq Composite opened lower and then rose 0.5% to close at
1673, within yesterday's range.
The primary cycle base is weak with the index
starting to trend downwards, the secondary trend is down, while
the short trend is up.
The S&P 500 moved up by a similar amount to
close at 1086.
Primary cycle base still shows weakness,
secondary trend - down and short cycle - up.
Citigroup
The financial services giant is to buy
California thrift, Golden State Bancorp, for $US 5.8 billion in
stock and cash. (more)
ASX Australia
The All Ords formed an inside day, closing up
12 points at 3341 on normal volume.
The primary trend is up, secondary - down and
short trend - up.
Chaikin Money Flow is still below zero,
signaling distribution.
Slow Stochastic (20,3,3) is below its signal
line.
The dollar breaks above 56 USc
The dollar traded overnight above 56 US cents
for the first time since January 2001. (more)
Gold
South african gold analysts see a bright
future for gold over the next 18 months. (more)
The local index continues to climb, with
strong Relative Strength (price ratio: xao) and Chaikin Money
Flow. MACD, however, shows a bearish divergence.
Telstra [TLS]
Telstra is signing up broadband internet clients
at an unprecedented rate. (more)
Relative Strength (price ratio: xao),
Chaikin Money Flow and MACD all show weakness.
Ausdoc
The document handling company is negotiating
with a mystery $300 million-plus buyer. (more)
Chaikin Money Flow and MACD show bearish
divergences. Relative Strength (price ratio: xao) is
steady.
Conclusion
Short-term: Avoid new entries. Maintain tight
stop-losses.
Medium-term: The All Ords has not yet formed a
base.
Long-term: Wait for a bull-trend on the Nasdaq
or S&P 500 (primary cycle).
Colin Twiggs
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