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.
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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