Trading Diary
March 1, 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 rocketed up 2.6% to close at 10368 on strong volume. The break above the high of early January signals that the up-trend is likely to continue. If the index can maintain at this level over the week ahead - the next major resistance level is 11500.
The Nasdaq Composite index rose 4.1% to close at 1802. The down-trend is weakening but has not yet reversed.

Manufacturing sector improves
A key (ISM) manufacturing sector index jumped to 54.7% from 49.9% in January, the first increase in 19 months. (more)

Australia - ASX
The All Ords recovered from early losses to close up slightly, at 3362 on strong volume. The MACD and Slow Stochastic are still below their signal lines. Expect a reaction on Monday to the positive news from the US.



IAG [IAG]
The former NRMA Insurance Group returned to profit, reporting a net profit of $49 million for the half-year. (more)





Conclusion

Short-term: Avoid new entries until there are positive signals from the MACD and Slow Stochastic.
Medium-term: Wait for a new high on the All Ords
Long-term: Look for a reversal on the Nasdaq or S&P 500.


Colin Twiggs


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