Trading Diary
May 30, 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 briefly tested the 9800 support level before rallying to close only slightly down at 9911. 
The secondary down-trend continues but will have to break through the 9800 (and arguably 9500) support levels to start a primary bear-trend.

The Nasdaq Composite rose 7 points to close at 1631.
The primary and secondary trends are down.

The S&P 500 closed down 3 points at 1064.
The primary and secondary cycles are trending downwards.

Palm's down
The hand-held device maker revised fourth-quarter sales forecasts down by 22% and expects to make a loss. (more)
ASX Australia
The All Ords was up 6 points at 3339 on strong volume. 
The primary trend is up, secondary trend - down. A break above 3370 would complete an inverted head and shoulders pattern.
Chaikin Money Flow continues to signal accumulation.
Slow Stochastic (20,3,3) and MACD are above their respective signal lines.

Dollar rises
The Australian dollar closed up further at 56.47 US cents. (more)
Smedley to quit Mayne [MAY]
Peter Smedley is to quit Mayne after the spin-off of logistics division, leaving MAY to focus on its core health operations. (more)
Relative Strength (price ratio: xao) and MACD are weak but Chaikin MF has again crossed to positive territory, signaling accumulation.

Austar [AUN]
Small shareholders revolt against the grant of new management share options. (more)
MACD and Chaikin MF show bullish divergences while Relative Strength (price ratio: xao) is still neutral. 


Peplin positive results [PTD]
Peplin Biotech's anti-skin cancer drug recorded positive results against a wide range of cancers and warrants further research, according to the American National Cancer Institute. (more)
MACD and Chaikin MF are positive, while Relative Strength (price ratio: xao) is still neutral.


Short-term: Long - Stochastic and MACD are above their signal lines. Maintain tight stop-losses.
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 (primary cycle).

Colin Twiggs

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