Incredible Charts 4.0.0.7
The new version provides an option to abbreviate the chart legend, on the Format Charts menu.
Incredible Charts should automatically update when you login.
Use Help >>About to check that you have the latest version.
Trading Diary
October 21, 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 rose 2.6%, forming a continuation
flag, and closed at 8538 on average volume. A primary trend
reversal will be signaled if the index rises above 9130.
The Nasdaq Composite Index climbed 1.7% to close at 1309. The primary trend will reverse if there is a break above 1426.
The S&P 500 is also forming a continuation flag, closing up 1.7% at 899. The primary trend is down. The index will complete a double bottom reversal if it rises above 965.
The Chartcraft NYSE Bullish % Indicator reflects a bear confirmed signal at 26% (October 18).
The Nasdaq Composite Index climbed 1.7% to close at 1309. The primary trend will reverse if there is a break above 1426.
The S&P 500 is also forming a continuation flag, closing up 1.7% at 899. The primary trend is down. The index will complete a double bottom reversal if it rises above 965.
The Chartcraft NYSE Bullish % Indicator reflects a bear confirmed signal at 26% (October 18).
Mixed results
Texas Instruments reported third-quarter earnings of 11 cents per share, compared to a loss of 3 cents a year ago, but warns that fourth-quarter sales and earnings will fall below estimates. (TI)
Dow component 3M Co. increased earnings by 38%, compared to the third quarter last year, and raised its guidance for the fourth quarter. (3M)
![](https://tradingdiary.incrediblecharts.com/images/2002-10-21_xao.png)
![](https://tradingdiary.incrediblecharts.com/images/2002-10-21_cmq.png)
![](https://tradingdiary.incrediblecharts.com/images/2002-10-21_cmqa.png)
![](https://tradingdiary.incrediblecharts.com/images/2002-10-21_cmqb.png)
Back Issues
Texas Instruments reported third-quarter earnings of 11 cents per share, compared to a loss of 3 cents a year ago, but warns that fourth-quarter sales and earnings will fall below estimates. (TI)
Dow component 3M Co. increased earnings by 38%, compared to the third quarter last year, and raised its guidance for the fourth quarter. (3M)
Gold
New York: Spot gold was down 190 cents at $US 310.60.
New York: Spot gold was down 190 cents at $US 310.60.
ASX Australia
The All Ordinaries closed down 19 points at 2948 on
reassuringly low volume. A break above 3150 will signal a
primary trend reversal.
MACD (26,12,9) and Slow Stochastic (20,3,3) are above their signal lines. Twiggs money is whipsawing around the zero line after a bullish divergence.
MACD (26,12,9) and Slow Stochastic (20,3,3) are above their signal lines. Twiggs money is whipsawing around the zero line after a bullish divergence.
![](https://tradingdiary.incrediblecharts.com/images/2002-10-21_xao.png)
Chemeq [CMQ]
After a stage 2 up-trend CMQ broke through resistance at 3.00 and is now forming a pennant/symmetrical triangle between 3.00 and 4.00. Relative strength (price ratio: xao) continues to rise.
After a stage 2 up-trend CMQ broke through resistance at 3.00 and is now forming a pennant/symmetrical triangle between 3.00 and 4.00. Relative strength (price ratio: xao) continues to rise.
![](https://tradingdiary.incrediblecharts.com/images/2002-10-21_cmq.png)
Congestion just below or above a resistance
level is normally a bullish sign. But, after being bullish for
some time, MACD and Twiggs money flow show bearish declines in
the last month.
![](https://tradingdiary.incrediblecharts.com/images/2002-10-21_cmqa.png)
The equivolume chart shows strong support at
3.00. Notice how support formed at the round number and not at
the high of day [1]. The small correction between [2] and [3],
on light volume, was a good time to increase ones position.
Alternatively, accumulate on day [4] at the breakout. Rallies
to [5] and [7] were on strong volume but this has faded on the
next two rallies at [8] and [10]. I will only increase the
position if MACD and TMF hold above zero and price breaks above
3.80 on strong volume.
![](https://tradingdiary.incrediblecharts.com/images/2002-10-21_cmqb.png)
A break below 3.30 would be bearish.
Short-term: Long. The
Slow Stochastic and MACD are above their respective signal
lines.
Medium-term: Long.
Use stop losses to protect yourself against a sudden
reversal.
Long-term: Wait for confirmation of the
bottom reversal signal.
Colin Twiggs
Thought for
the Day:
Many people watch, but few see.
- Monty Roberts, Horse Sense for People.
Many people watch, but few see.
- Monty Roberts, Horse Sense for People.
Back Issues
Click here to access the
Trading Diary Archives.
Back Issues
Access the Trading Diary Archives.