Trading Diary
April 02, 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 Terms of Use .




USA
With Middle East tensions casting a shadow over the market, the Dow slipped further to close at 10313 on regular volume.
A slew of profit warnings from software companies caused the Nasdaq Composite index to fall more than 3%, closing at 1804.
The S&P 500 retreated 0.85% to close at 1136.

Australia - ASX
The All Ords closed down at 3338 on normal volume. The MACD and Slow Stochastic are below their signal lines.



Interest rates
The bond market is pricing in a 1.7% interest rate rise by December 2002.(more)
 
Lihir [LHG]
Newmont Mining sells its stake in Lihir, ending hopes of a takeover bid. (more)

Sectors: Miscellaneous Industrials
A stock screen of XMI sectors turned up the following candidates for my watchlist:
  • Melbourne IT (MLB)
  • Quiktrak (QTK)
  • SMS Management (SMX)

The screen used a 10-day and 150-day Moving Average Crossover plus 150% Volume Spike.





Conclusion

Short-term: Avoid long until we see a 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.


Colin Twiggs


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