Trading Diary
February 20,
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 market is highly volatile with the
averages regularly posting gains/losses of 1% to 3%.
The Dow fluctuates in a trading range between 9,500 and
10,000, signaling uncertainty, while the Nasdaq
is in a down-trend.
Today the Dow gained more than 2% in
a late afternoon rally, to close at 9941 on high
volume. The Nasdaq 100 gained 1.5% to close
at 1408.
AOL
downgraded
Lehmann analyst Holly Becker downgraded AOL Time
Warner to market perform: "Our concerns fall
into four buckets: a slowing narrowband business, a
costly broadband transition, online advertising and
European expansion." (more)
Australia - ASX
The All Ords declined sharply following
the earlier drop in the US markets, closing at 3383 on
large volume. The MACD has crossed to below its signal
line, joining the Slow Stochastic.
PBL [PBL]
Publishing &
Broadcasting profits are hit by the advertising
downturn and big gambling
wins. (more)
Wine merger
[MGW]
Brian McGuigan Wines and Simeon
Wines are to merge, blending "marketing talents with
production expertise". (more)
Conclusion
Short-term: Avoid further new entries until there is a
signal from the MACD and Slow Stochastic.
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.