Trading Diary
March 22, 2002

These extracts from my daily trading diary are intended to illustrate the techniques used in short-term trading and should not be interpreted as investment advice. Full terms and conditions can be found at Terms of Use .




USA
The Dow closed down 0.5% at 10427 on low volume, holding above support at 10300.
The Nasdaq Composite index retreated 0.9% to close at 1851 and may test support at 1700 in the weeks ahead.
The S&P 500 closed down at 1148, failing in its fourth attempt to break above resistance at 1170 to 1180.

Fast food slows
McDonalds issues a profit warning for the first quarter - the sixth straight quarter of disappointing earnings. (more)

Australia - ASX
The All Ords closed down at 3382 on low volume and low volatility. MACD and Slow Stochastic are below their signal lines.



Dollar above 53 US cents [AUD]
The dollar holds on to recent gains.(more)

Sectors: Miscellaneous industrials
XMI has crossed to above its 30-week weighted moving average and relative strength (Price Ratio) is improving.
 

 

22

Miscellaneous Industries

221

Miscellaneous Industrials

222

Miscellaneous Services

223

Mining Services

224

Agriculture and Related Services

225

Automotive & Related Services

226

Computer & Office Services

227

Entrepreneurial Investors

228

High Technology

 




Conclusion

Short-term: Avoid new positions.
Medium-term: Wait for a new high on the All Ords.
Long-term: Wait 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.