Trading Diary
April 19, 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 formed an inside day, closing up slightly at 10257 on reasonable volume. The up-trend on the secondary cycle is intact.
The Nasdaq Composite index closed weaker at 1796, within support at 1700 and resistance at 1950.
The S&P 500 closed almost unchanged at 1125, within the 1070 to 1180 trading range.
 
Microsoft rebounds
Microsoft stock recovered on analyst upgrades from Merrill Lynch and First Albany. (more)
 
Sun Microsystems
Sun expects to return to profit in the fourth quarter, despite weak IT spending. (more)
 
ASX Australia
The All Ords closed down slightly 3355 on reasonable volume. The close near to the daily high signals that buyers had regained control by the end of the session. Chaikin Money Flow is back in negative territory while the MACD and Slow Stochastic remain positive.



St George Bank [SGB]
Rumors abound about likely suitors as the restrictive articles of association, limiting any shareholder to 10 per cent, expire on July 1. (more)
 
Sectors
Alcohol & Tobacco (XAT) continues to weaken.


 
While Gold (XGO), Banks & Finance (XBF) and Retail (XRE) continue their strong up-trends.




 




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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