Trading Diary
March 8, 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 formed a third inside day closing up at down at 10572 on reasonable volume.
The Nasdaq Composite index had a stronger day, closing up 2.5% at 1929. A rise above 2100 will signal the start of a secondary cycle up-trend.
The S&P 500 has closed at 1164, near to its January high.
 
KMart puts up the shutters
The bankrupt retailer is to close 284 stores and cut 22,000 jobs. (more)  

Australia - ASX
The All Ords closed softer at 3428 on low volume. The MACD and Slow Stochastic are above their signal lines.



Harmony/Hill 50
South African gold producer, Harmony, now has control of Hill 50.(more)





Conclusion

Short-term: The MACD and the Slow Stochastic are above their signal lines. Take new positions but keep tight stops as we can expect a retest of support levels in the next week.
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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Colin Twiggs

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.