March 7, 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 formed another inside day closing down
at 10525 on reasonable volume.
The Nasdaq Composite index closed slightly down at 1881.
Greenspan confirms recession
"The recent evidence increasingly suggests that an economic
expansion is already well under way, although an array of
influences unique to this business cycle seems likely to
moderate its speed," Federal Reserve Chairman Allan
Greenspan tells the Senate Banking Committee.
Australia - ASX
The All Ords rose steeply to make a record close at 3440 on
strong volume. The MACD has joined the Slow Stochastic
above its' signal line.
Big jump in real GDP
GDP for the December quarter jumped 1.3%, almost twice the
The All Ords record close
The All Ords closed at 3440, just failing to exceed the high of
3443.9 reached last month.(more)
Short-term: The MACD joins the Slow Stochastic above its signal
line. Take new positions but keep tight stops as we can expect
a retest of support levels in the next week.
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.