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Trading Diary
May 1, 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 rallied a further 1.1% to close at 10059 on strong volume. The short-trend is down but the secondary cycle up-trend is intact.

Oracle, Sun and Cisco were hammered in the morning session but the Nasdaq Composite index rallied late to close 0.6% down at 1677. The secondary cycle is still in a down-trend.
 
The S&P 500 rose 0.9% to close at 1086, well above the key 1070 support level. A break below 1070 has a calculated target of 960.
 
US automakers increase sales
GM and Chrysler lead increased April car and truck sales. (more)
 
ASX Australia
The All Ords rallied to close at 3309 on normal volume. If the index breaks below 3300, the next major support level is at 3230 to 3240, the same as the target from the double top pattern.


 
BHP [BHP]
March quarter profit fell by 33% due to weak base metals prices. (more)
Chaikin Money Flow has been signaling distribution since January.


Austar gets a helping hand [AUN]
AUN closed at 16.5 cents after the pay TV operator revealed that first-quarter interest charges had increased five-fold to $16 million - extra charges relating to the default on bank loans. (more)
MACD showed a bearish divergence in February/March.


 




Conclusion
 
Short-term: Avoid long. Keep stop losses on existing trades as tight as possible.
Medium-term: Wait for the All Ords to form a base.
Long-term: Wait for the Nasdaq or S&P 500 to break above their January highs.

Colin Twiggs



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