Trading Diary
April 18, 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 closed down slightly at 10205 on strong volume but closed near the day's high, showing that buyers are regaining control. The up-trend on the secondary cycle is still intact.
The Nasdaq Composite index closed down at 1802. Support is at 1700 and resistance at 1950.
The S&P 500 had a similar day to the Dow, closing down slightly at 1124 but with a strong close. The index is still within the 1070 to 1180 trading range.
 
Microsoft misses targets
Microsoft missed third-quarter sales and earnings targets and warns that it will miss analysts estimates for the year ahead, causing the stock to fall sharply in after-hours trading. (more)
 
American Express
Cost-cutting helped Amex record a 15% increase in first-quarter earnings. (more)
 
ASX Australia
The All Ords closed up slightly at 3356 on strong volume. A weak close saw the Chaikin Money Flow return to negative territory while the MACD and Slow Stochastic remain positive.



Amcor [AMC]
Acquisitions in Europe and North America helped the packaging giant lift March-quarter earnings by 17.5%. (more)
 
Optus faces further cuts [SGT]
Further staff cuts are expected as revenue falls. (more)
 




Conclusion
 
Short-term: Look for new entries. Keep stop losses tight.
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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