Trading Diary
May 6, 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 fell sharply, closing almost 2% down at
9808 on normal volume. The secondary cycle up-trend is still
intact.
The Nasdaq Composite index dropped more than 2% to close at 1578. The secondary cycle is in a down-trend.
The S&P 500 fell through the 1070 support
level, closing 1.9% down at 1052. The break below the support
level has a calculated target of 960 - close to September 2001
levels.
Stocks tumble, interest rates unlikely to
change
With the fall in stock prices, the Fed is
expected to leave interest rates unchanged at its meeting
tomorrow. (more)
The sage of Omaha
Warren Buffett speaks on the terrorism threat
facing the insurance industry. (more)
ASX Australia
The All Ords fell below 3300 as buyers withdrew
from the market, closing at 3294 on normal volume.
Slow Stochastic has joined MACD below its
signal line.
Right when? [CML]
Coles Myer's Right Now profitability
campaign misfires as the retailer issues a profit
warning. (more)
MACD shows a bearish divergence since
February 2002.
Sectors: Retail
Competitor Woolworths has continued to make
gains, despite a weak bearish divergence on MACD.
Conclusion
Short-term: Avoid long. Keep stop losses on existing trades as
tight as possible.
Medium-term: Wait for the All Ords to form a base.
Long-term: Wait for the Nasdaq or S&P 500 to break above
their January highs.
Colin Twiggs
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