April 01, 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 at
The Dow closed down 0.4% on Monday at 10359 on low volume. If
the index falls below 10200 this will mean a downward turn
in the short cycle.
Hopes of a chip sector recovery kept the Nasdaq in
positive territory, closing up 0.9% at 1862. So far the index
has failed to exceed its January high which would signal the
start of a bull market.
Likewise, the S&P 500 encountered resistance around
the level of its January peak, and closed almost unchanged at
Crude oil futures above $27
Middle East tensions force crude futures above $27 a barrel
(after trading below $20 in February). (more)
Australia - ASX
The All Ords closed up slightly Thursday, at 3363 on very
high volume, signaling accumulation. The MACD and
Slow Stochastic are below their signal lines.
Falling unemployment and strong growth have increased fears of
a rise in official interest rates, even as early as
Tuesday's Reserve Bank meeting.(more)
Sectors: Miscellaneous Industries
Miscellaneous Industries is a mixed assortment, including
Computer & Office Services and High Technology sectors. The
XMI index has formed a Stage 1 base and then broken above the
30-week weighted moving average, warranting further
Short-term: Avoid long until there
is an intermediate up-trend.
Medium-term: Wait for a new high on the All Ords.
Long-term: Wait for the Nasdaq or S&P 500 to break
above their January highs.
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