Trading Diary
April 08, 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 continues it short-term down trend, closing at 10249 on good volume.
The Nasdaq Composite index completed a closing price reversal day , closing up at 1785 - a possible trough on the intermediate cycle.

The S&P 500 is still ranging between 1070 and 1180, closing up slightly at 1125.

Blue Monday

IBM falls 10% on warning of lower first-quarter sales and earnings. (more)

 

Australia - ASX

The All Ords closed unchanged at 3340 on low volume. The low close in relation to the daily range signals a possible reversal, while Chaikin Money Flow (below zero for most of March) confirms that distribution is taking place.

The MACD is still below its signal line.

Coles Myer [CML]

Coles has fallen 8% since it announced the phasing out of its discount card.(more)

Newcrest [NCM]

Currency and gold hedging losses cause a 90% drop in third-quarter earnings. (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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