Trading Diary
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 Terms of Use .

USA

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 signal lines.

Interest rates affect the dollar

The Aussie dollar slid 25 points as the Reserve Bank leaves rates unchanged.(more)

 

Newscorp stock falls 3% [NCP]

The media group faces a US$ 5 billion valuation shortfall on its investment in television guide technology company, Gemstar. (more)

 

Conclusion

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.

Colin Twiggs

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