Trading Diary
April 18, 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 slightly at 10205 on
strong volume but closed near the day's high, showing that
buyers are regaining control. The up-trend on the secondary
cycle is still intact.
The Nasdaq Composite index closed down at 1802. Support is at 1700 and resistance at 1950.
The Nasdaq Composite index closed down at 1802. Support is at 1700 and resistance at 1950.
The S&P 500 had a similar day to the Dow,
closing down slightly at 1124 but with a strong close. The
index is still within the 1070 to 1180 trading
range.
Microsoft misses targets
Microsoft missed third-quarter sales and
earnings targets and warns that it will miss analysts estimates
for the year ahead, causing the stock to fall sharply in
after-hours trading. (more)
American Express
Cost-cutting helped Amex record a 15%
increase in first-quarter earnings. (more)
ASX Australia
The All Ords closed up slightly at 3356 on
strong volume. A weak close saw the Chaikin Money Flow return
to negative territory while the MACD and Slow Stochastic remain
positive.
Amcor [AMC]
Acquisitions in Europe and North America
helped the packaging giant lift March-quarter earnings by
17.5%. (more)
Optus faces further cuts [SGT]
Further staff cuts are expected as revenue
falls. (more)
Conclusion
Short-term: Look for new entries. Keep stop
losses tight.
Medium-term: Wait for a new high on the All
Ords.
Long-term: Wait for the Nasdaq or S&P 500
to break above their January highs.
Colin Twiggs
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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.