March 14, 2002
These extracts from my daily
trading diary are intended to illustrate the techniques used in
short-term trading and should not be interpreted as investment
advice. Full terms and conditions can be found
of Use .
The Dow formed a very small inside day, closing up
slightly at 10517 on low volume. The bears are likely to
test the 10300 support level in the days ahead.
The Nasdaq Composite index closed down 0.4% at 1854.
The S&P 500 also recorded an inside day, closing almost
unchanged at 1153.
Beware of Japanese stocks
Uninformed analysts have been recommending Japan as a recovery
Accounting changes will add another $1.2 billion of debt to the
balance sheet. (more)
The All Ords closed slightly up at 3398 on low
volume. The Slow Stochastic is below its signal line.
Coles Myer [CML]
First-half profits rose 8.2% but the good news is
that costs are forecast to fall by $300 million
within 2 years.(more)
Sectors: Alcohol and Tobacco [XAT]
XAT has entered a Stage
trading range: the 30-week weighted moving average is
sloping down and relative strength (price ratio) has been
falling since October 2001.
Short-term: Avoid new positions until the Slow Stochastic turns
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.
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