sitesearch
 


Trading Diary
May 6, 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 sharply, closing almost 2% down at 9808 on normal volume. The secondary cycle up-trend is still intact.

The Nasdaq Composite index dropped more than 2% to close at 1578. The secondary cycle is in a down-trend.
 
The S&P 500 fell through the 1070 support level, closing 1.9% down at 1052. The break below the support level has a calculated target of 960 - close to September 2001 levels.
 
Stocks tumble, interest rates unlikely to change
With the fall in stock prices, the Fed is expected to leave interest rates unchanged at its meeting tomorrow. (more)
 
The sage of Omaha
Warren Buffett speaks on the terrorism threat facing the insurance industry. (more)
 
ASX Australia
The All Ords fell below 3300 as buyers withdrew from the market, closing at 3294 on normal volume.
Slow Stochastic has joined MACD below its signal line.


 
Right when? [CML]
Coles Myer's Right Now profitability campaign misfires as the retailer issues a profit warning. (more)
MACD shows a bearish divergence since February 2002.


 
Sectors: Retail
Competitor Woolworths has continued to make gains, despite a weak bearish divergence on MACD.


 




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



P.S. We are trying out new Email software. Please report if you experience any problems with the trading diary.

Please forward this to your friends and colleagues.




Back Issues
Click here to access the Trading Diary Archives.



Perfect Your Market Timing
Learn how to manage your market risk.





The weekly Trading Diary offers fundamental analysis of the
economy and technical analysis of major market indices,
gold, crude oil and forex.
The monthly What's New newsletter covers new articles
on Trading and the Economy, as well as new software updates.




Back Issues
Access the Trading Diary Archives.





 
Top of Page