Trading Diary
October 2, 2004

USA

The Dow Industrial Average rallied strongly after a false break below 10000. Thursday's weak close accompanied by strong volume signals that buyers presently dominate the market. A break above 10350 would be a bull signal, while a pull-back that respects support at this level would add further confirmation. A break below 10000 would likely test support at 9800.

The longer-term consolidation pattern around 10000 reflects market uncertainty. A trough above 10000 would be a bullish sign, while a peak below this level would be bearish.
Twiggs Money Flow is distinctly bearish, falling sharply since the beginning of the year.

The Nasdaq Composite has gapped through resistance at 1900 on higher volume: a strong bull signal. Expect a test of support at 2050. Twiggs Money Flow has crossed above the signal line but still looks tentative.

The primary trend remains downward

The S&P 500 has rallied strongly in the last two days, signaling that buyers control market direction in the short-term. Twiggs Money Flow is moving sideways, reflecting indecision.

In the long-term, consolidation around 1100 continues. Falling troughs signal weakness but there is no clear breakout as yet. An intermediate trough above 1100 would be a bullish sign, while a peak below 1100 would be bearish.

NYSE Bullish Percent

The NYSE Bullish Percent Index is at 65.77%, continuing the bear correction.

Gold

New York: Spot gold has broken free of the consolidation above support at $400, closing the week at $419.10. 
A pull-back that respects support at $410 would be a further bull signal.
The next major resistance level is the 10-year high of $427.25.

ASX Australia

The All Ordinaries quickly recovered after a short correction last week. Increased volume on the rally, and a weak close and lower volume on Friday, indicate that buyers dominate the market.

Twiggs Money Flow has completed a series of small troughs above the signal line: a bullish sign.
The All Ords is in a strong primary up-trend. Bear in mind, however, that any good trend has corrections. Allow for a test of support at 3550 in the medium-term and 3450 in the longer-term.

Incredible Charts - new Search Facility

In addition to the new securities toolbar, Incredible Charts version 4.0.3.700 offers an improved securities search function. You no longer have to upload exchanges in order to search them: the search works off the server.

Basic Search

• Select the Search button 
  
  
    on the toolbar 
  (or select Securities >> Search on the menu)
• Enter whole or part of a security's name in the dialog box
• Click Find Next
• Select a security by double-clicking on the name.

View last Search

• Click 
  
  
    Return to Last Search.

Refine your Searches

Add a space after the name/code and then enter an exchange code. 
This will limit a search to that exchange.

Example: A search for bhp ao will list all BHP options and warrants.

Set a Default Exchange
(only available in version 4.0.3.710 - to be released next week as a test version)

Set a Default Exchange and you will not need to enter the EXCHANGECODE for that exchange.
Example: If Australia is set as the Default Exchange, you need only type ncp instead of ncp ax to load News Corporation.

To set a Default Exchange:

• Right-click the
  
  
  Search button
• Select an exchange (e.g. AUSTRALIA)

 

• Or select Securities >> Set Default Exchange from the chart menu.

Sort the Search Return

Click on a column heading to sort the Search Return:

1. Click on the Security header to sort in alphabetical order.
2. Click on the blank header square, above the bullets, to sort in order of the security code.

Search for Code Only

To exclude names and search for security codes only:

• click the drop-down arrow next to the Search button
  
  
  on the toolbar;
• select Search for Security Code Only.