Trading Diary
February 5, 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 .

The Dow closed largely unchanged at 9685 on strong volume, while the Nasdaq 100 continued its downward trend, closing at 1462.
HP-Compaq merger
The battle intensifies ahead of the March 19th and 20th shareholders meetings. (more)
Gold near $300
Spurred by doubts over equities, gold futures have climbed to within a whisker of $300 per ounce.(more)
Australia - ASX
The All Ords closed down at 3393 on strong volume, an expected reaction after the Dow of the previous evening. The 20-Day Slow Stochastic is still below its signal line.

Normandy Mining announced to shareholders that it would not be declaring a dividend, despite a 31% rise in profits. (more)
MACD/Slow Stochastic
A reader wrote to ask why I switch between the MACD and Slow Stochastic indicators "whenever it suits me". I combine the two indicators to determine the direction of the short-term trend. More details can be found at Trading the Short.

Short-term: Avoid new trades until the 20-Day Slow Stochastic crosses above its signal line.
Long-term: Wait for a correction on the secondary cycle.
Colin Twiggs
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