March 5, 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
The Dow pulled back almost 1.5% on an inside day with weakness
in defense and retail stocks, closing at 10433 on strong
volume. We may well see a test of the 10300 support level
before the rally continues.
The Nasdaq Composite index closed slightly up at 1866.
Australia - ASX
The All Ords reacted to yesterday's US markets, closing up at
3382 on strong volume. The MACD is still below its' signal
Foxtel and Optus have struck a radical deal to share
programming, putting Foxtel in a strong position to renegotiate
expensive Hollywood contracts.(more)
Over-reliance on home lending may undermine the continued
growth of the regionals.(more)
Short-term: Avoid new entries until the MACD joins the Slow
Stochastic above its signal line.
Medium-term: Wait for a new high on the All Ords
Long-term: Look for a secondary cycle reversal on the Nasdaq or
S&P 500 - if they break above their January highs.
P.S. We are trying out new Email software. Please report
if you experience any problems with the trading diary.
Please forward this to your friends and colleagues.
Access the Trading Diary Archives.