Trading Diary
June 6, 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 1.75% to 9624 on strong
volume.
A break below 9500 will signal a primary bear-trend. The secondary cycle trends downwards.
A break below 9500 will signal a primary bear-trend. The secondary cycle trends downwards.
The Nasdaq Composite dropped 2.5% to
1554.
The primary and secondary cycles trend downwards.
The S&P 500 fell 2.0% to close 20 points
down at 1029.
Primary and secondary cycles trend downwards.
Intel sparks chip sell-off
Intel lowers its second-quarter
revenue estimates because of soft European sales.
(more)
Oil down, gold up
Crude futures continued a
10-session losing streak while August gold futures rallied to
close at $US 325.80 per ounce. (more)
ASX Australia
The All Ords lost 4 points to close at 3299 on
strong volume.
The primary trend is up, secondary trend - down.
A break above 3370 would complete an
inverted head and shoulders pattern.
MACD (26,12,9) and Slow Stochastic (20,3,3) are
below their signal lines.
Flight Centre [FLT]
Flight Centre forecasts a 30% increase in
2002 annual profit, despite difficult trading conditions.
(more)
FLT has broken through resistance at $28.00
with Relative Strength (price ratio: xao) trending
upwards.
MACD is recovering while Chaikin MF is
fairly weak, despite having crossed into positive
territory.
Coles breakup? [CML]
External advisers are
investigating the spin-off of non-performing assets such as
Myer Grace Bros. department stores. (more)
CML: Relative Strength (price ratio: xao),
Chaikin MF and MACD all show weakness.
Conclusion
Short-term: Avoid long. 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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colleagues.
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