Trading Diary
March 26, 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 recovered by 0.7% to close at 10354 on reasonable volume.
The Nasdaq Composite index rallied by a similar amount to close at 1824.
The S&P 500, likewise, rose to 1138.

SEC gets tough over accounting practices
The SEC is sueing 6 former Waste Management executives for fraudulently inflating profits by $1.7 billion over a 5 year period. (more)
 
Network Associates
Tech stock Network Associates fell 11% on news that the SEC is investigating its accounting practices. (more)

Australia - ASX
The All Ords fell sharply, closing more than 1% down on higher volume. The MACD and Slow Stochastic are below their signal lines.



Stocks hit by rate fears
The neutral bias from the US Fed and the 0.25% rate hike across the Tasman has pushed the market into bear territory.(more)
 
Coles Myer [CML]
Coles are to phase out their discount card. (more)

Sectors: Retail
The retail sector index (XRE) has been in a strong Stage 2 up-trend since August 2000, with rising relative strength (price ratio) and rising 30-week weighted moving average.





Conclusion

Short-term: Avoid new long and tighten up stops.
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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