Trading Diary
May 24, 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 fell by more than 1% to 10104 on low volume.
The primary trend is up, secondary - up and short trend - down.

The Nasdaq Composite dropped more than 2% to close at 1661.
The primary cycle base is weak with the index starting to trend downwards, the secondary and short trends are down.
 
The S&P 500 closed 13 points down at 1083.
The primary cycle base is weak and starting to trend lower, the secondary trend is down and short cycle - up.
 
Memorial Day
The market will be closed on Monday.
 
Stocks down ahead of Memorial Day
Microsoft and Intel led stocks lower as Goldman Sachs warns of lower semiconductor demand and the government revises first-quarter growth estimates downwards. (more)
 
CMS chief quits
The CEO of CMS Energy Corp. resigns after disclosure of $US 5.2 billion in sham electricity trades. (more)
 
ASX Australia 
Institutional buying helped the All Ords to close up at 3338 on low volume.
The primary trend is up, secondary - down and short trend - up.
Chaikin Money Flow fluctuates around zero, signaling uncertainty.
Slow Stochastic (20,3,3) has joined MACD (26,12,9) above its signal line.


The dollar
The dollar's rise may hurt exporters. (more)
 
Gold bulls are back
Gold made a 30-month high this week, reaching $US 322.5 an ounce. (more)
Chaikin Money Flow and Relative Strength (price ratio: xao) both show strength, while MACD appears to be recovering after a bearish divergence.


 




Conclusion
 
Short-term: Look for new entries. Maintain tight stop-losses.
Medium-term: Wait for the All Ords to form a base.
Long-term: Wait for a bull-trend on the Nasdaq or S&P 500 (primary cycle).

Colin Twiggs



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