April 03, 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 fell more than 1% to close at 10198 on strong volume,
confirming that the short cycle is in a down-trend.
The Nasdaq Composite index closed down a further 1% at 1784,
continuing its short cycle down-trend.
The S&P 500 also confirmed the start of a down-trend on the
short cycle, closing at 1125.
Hopes of a second-half recovery fade
The failure of PeopleSoft to meet its revenue targets signals
a slowdown in tech spending. (more)
Australia - ASX
The All Ords closed lower at 3329 on very high
volume. Chaikin Money Flow has spent most of March below
zero, signaling that distribution is taking
place. MACD and Slow Stochastic are below their
Interest rates affect the dollar
The Aussie dollar slid 25 points as the Reserve Bank leaves
Newscorp stock falls 3% [NCP]
The media group faces a US$ 5 billion valuation shortfall on
its investment in television guide technology company, Gemstar.
Short-term: Avoid long.
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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