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Trading Diary
April 22, 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 10136 on lower volume. The short-trend is down but the secondary cycle up-trend is intact.
The Nasdaq Composite index opened up a gap to close more than 2% weaker at 1758 - still above support at 1700, with resistance at 1950.
The S&P 500 closed down 1.5% at 1107, within the 1070 to 1180 trading range.
 
The lines are down
Investors flee telecom stocks as WorldCom cuts revenue and cash flow targets, Ericsson is to lay off one-fifth of its work force and Lucent cuts 7000 jobs. (more)
 
Gold at $355 an ounce?
Analysts are bullish on the outlook for gold. (more)
 
ASX Australia
The All Ords closed up at 3362 on lower volume. The weak close signals that the market may face increased selling pressure. Chaikin Money Flow continues in negative territory, signaling that distribution is taking place. The MACD remained positive while the Slow Stochastic crossed below its signal line.



Dollar at 54 US cents
The dollar is hovering at around 54 US cents but is expected to slip back to 53 US cents. (more)
 
Southern Cross Broadcasting [SBC]
Stock in the media company fell 12% as it failed to meet analysts forecasts and warns that there are no signs of improvement in the advertising market.


 
SBC has been showing a bearish MACD divergence for several weeks.
 




Conclusion
 
Short-term: Avoid new entries. Keep stop losses on existing trades as tight as possible.
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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