Trading Diary
February 19,
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 closed down 1.6% at 9743
on normal volume. The Nasdaq 100 fell 3.5% to close
at 1386 as tech stocks are sold down on accounting
concerns.
IBM leads the
retreat
IBM stock fell 3.3% as the
company agrees to change disclosure on future
transactions. (more)
Australia - ASX
The decline on the All Ords has slowed
with the index closing at 3414 on lower volume.
Expect further weakness today as the market reacts to
the Dow/Nasdaq. The Slow Stochastic is still below its
signal line.
CSL [CSL]
Market reaction was uncertain despite
the blood products group posting a 107% rise in net
profits for the half year ended December
2001. (more)
Conclusion
Short-term: Avoid further new entries.
Long-term: Wait for a correction on the secondary cycle.
Colin Twiggs
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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.