Trading Diary
January 31, 2002
These extracts from my daily stock trading diary are intended to illustrate the techniques used in short-term share trading and should not be interpreted as investment advice. Full terms and conditions can be found at Terms of Use .




USA
The Dow climbed another 1.6% to close at 9920 on strong volume, while the Nasdaq 100 made a weaker rally, to 1550.
 
P&G
Proctor & Gamble leads the market up, announcing good results. (more)
 
Disney
Walt Disney Co. reported a more than 50% drop in first quarter earnings, excluding one-off items, on a 5% fall in revenue. (more)
 
Australia - ASX
The All Ords rose strongly to close at 3404 on good volume, near to its high of 3425. The MACD has crossed to above its signal line, signaling a market entry point. Coming so soon after a bearish divergence, it will pay to be cautious and only enter trades where stop losses can be placed within tight limits.
 

 
Computershare [CPU]
Qantas moves register to rival, ASX Perpetual Registrars (more)
 
Lang Corp and Toll [TOL]
The pair's National Rail Consortium will acquire FreightCorp and National Rail for $1.05 billion. (more)
 




Conclusion
Short-term: The MACD has signaled a market entry point. Approach the market with caution as the MACD has just completed a bearish divergence. Only take trades where stop losses can be set within tight limits.
 
Long-term: Wait for a correction on the secondary cycle.
 
Colin Twiggs
 
 
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Colin Twiggs

Author: Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.

Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.

Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.

He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.