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Trading Diary
December 17, 2001

This is my daily stock trading diary. It is intended to illustrate the techniques used in short-term share trading and should not be interpreted as investment advice. Full terms and conditions can be found at Terms of Use .




USA
The Dow closed up at 9891 on reasonable volume. The Nasdaq closed up 2% and S&P 500 up 1%. We now have to wait for the completion of another short-term cycle before we will know whether the bearish divergence on the MACD indicator is confirmed.
 
Amgen buys Immunex
Amgen buys its biotech rival to gain control of rheumatoid arthritis drug, Enbrel. (more)
 
Australia - ASX
The All Ords closed almost unchanged at 3236, on weak volume. Sellers still control the market.
 

 
Christmas trading
Retail sales are looking good. (more)
 
Long-term approach
One of the most reliable long-term indicators, the Coppock Indicator, is specifically designed to signal the start of a bull market. Signals are taken when the indicator turns up while below zero. Over the past year the Coppock has headed South and is now approaching the zero line. Keep an eye on this over the next few months.
 

 




Conclusion
Short-term: Both markets are showing weakness. Tighten up your stop losses and avoid new entries.
Long-term trades: Wait for a correction on the secondary cycle.
 
Colin Twiggs
 
 
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