Trading Diary
February 25, 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 had another strong day, closing above the 10,000 resistance level, at 10,145 on reasonable volume - up almost 1.8%. If the Dow breaks above the 10,300 resistance level the secondary rally is likely to continue.
The Nasdaq 100 soared 3.8% to close at 1,407 but is still in a secondary cycle down-trend.
 
GM surprise
Citing better-than-expected sales, General Motors raised sales and earnings estimates for the quarter and the full year. (more)
GM is a lead indicator of the economy - "What is good for GM is good for America".
 
Australia - ASX
After an early rally the All Ords retreated to close amost unchanged at 3368 on low volume. The MACD and Slow Stochastic are both below their signal lines.
 

 
Back from the brink [AUN]
Banks agree to an extension of time for Austar to repay/rollover $400 million of overdue debt. (more)
 
Lihir - next? [LHG]
Newmont Mining CFO says that they will either quit their 9.7% stake in Lihir Gold or buy more. (more)
 




Conclusion
 
Short-term: Avoid new entries until there are positive signals from the MACD and Slow Stochastic (20,3,3).
Long-term: Wait for the US uncertainty to clear.
 
 
Colin Twiggs
 
 
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