Trading Diary
March 1, 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 rocketed up 2.6% to close at 10368 on strong volume.
The break above the high of early January signals that the
up-trend is likely to continue. If the index can maintain at
this level over the week ahead - the next major resistance
level is 11500.
The Nasdaq Composite index rose 4.1% to close at 1802. The
down-trend is weakening but has not yet reversed.
Manufacturing sector improves
A key (ISM) manufacturing sector index jumped to
54.7% from 49.9% in January, the first increase in 19
months. (more)
Australia - ASX
The All Ords recovered from early losses to close up slightly,
at 3362 on strong volume. The MACD and Slow Stochastic
are still below their signal lines. Expect a reaction on
Monday to the positive news from the US.
IAG [IAG]
The former NRMA Insurance Group returned to profit, reporting a
net profit of $49 million for the half-year. (more)
Conclusion
Short-term: Avoid new entries until there are positive signals
from the MACD and Slow Stochastic.
Medium-term: Wait for a new high on the All Ords
Long-term: Look for a reversal on the Nasdaq or S&P 500.
Colin Twiggs
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