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 atTerms
of Use .
March 13, 2002
Another inside day, indicating continued uncertainty, with
the Dow closing down more than 1% at 10501 on normal
volume, but continuing to hold above the 10300 support
The Nasdaq Composite index retreated 1.85% to 1862 with
chip stocks being sold down.
The S&P 500 retreated 1% to 1154, below the important
1170/1180 resistance level.
Triple witching hour this Friday
Contracts for stock index futures, stock index options and
stock options simultaneously expire on the third Friday of
March, June, September and December. The last hour of trading
is highly volatile as traders attempt to close out their
Chip stocks down
Analysts cut growth forecasts and valuations for Intel and AMD.
Australia - ASX
The All Ords retreated further to close at 3396 on low volume.
The Slow Stochastic is below its signal line.
Sectors: Health & Biotechnology
The XHB index appears to be entering a
decline, with declining relative strength
 and the last 6 weeks trading below the 30-week
weighted moving average . Tighten up stops in this sector.
Losses totalled $682 million last year, including $240 million
Chairman Ian Burgess and chief executive Hugh Morgan are
to retire. (more)
Short-term: Avoid new positions until the Slow Stochastic and
MACD signal a resumption of the rally.
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.
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