Trading Diary
March 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 .




USA
The Dow pulled back almost 1.5% on an inside day with weakness in defense and retail stocks, closing at 10433 on strong volume. We may well see a test of the 10300 support level before the rally continues.
The Nasdaq Composite index closed slightly up at 1866.

Australia - ASX
The All Ords reacted to yesterday's US markets, closing up at 3382 on strong volume. The MACD is still below its' signal line.



Foxtel-Optus
Foxtel and Optus have struck a radical deal to share programming, putting Foxtel in a strong position to renegotiate expensive Hollywood contracts.(more)

Regional banks
Over-reliance on home lending may undermine the continued growth of the regionals.(more)





Conclusion

Short-term: Avoid new entries until the MACD joins the Slow Stochastic above its signal line.
Medium-term: Wait for a new high on the All Ords
Long-term: Look for a secondary cycle reversal on the Nasdaq or S&P 500 - if they break above their January highs.


Colin Twiggs


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