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February 21, 2002
These extracts from my daily stock trading diary are 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 fell 1% to close at 9834 on strong volume. The Nasdaq 100 fell more than 4% to close at 1348.
The risk is high that the Dow will break below 9500 and follow the Nasdaq into a down-trend.
 
Tech stocks unnerve a shaky market
Negative news from Ciena, Cisco and Intel  (more)
 
Australia - ASX
The All Ords moved lower to close at 3380 despite the earlier gains in the US markets. The MACD and Slow Stochastic are both below their signal lines.
 

 
Newscorp [NCP]
Newscorp prefs drop on rumors that WorldCom MCI wants to offload its $1.2 billion holding of preferred stock. (more)
 




Conclusion
 
Short-term: Avoid new entries.
Long-term: Wait for a correction on the secondary cycle.
I frequently receive Emails asking me to explain my long-term strategy:
I believe that there is a strong likelihood of a correction on the Dow and that this will impact on the local market. Now is not the time to take long-term positions in the market and I am waiting to see the outcome of the current uncertainty. This may take several months. When I refer to long-term it means a 1 year to 5 year investment time frame.
 
Colin Twiggs
 
 
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