Trading Diary
May 10, 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 .

The Dow fell a further 1% to close below 10000, at 9939, on normal volume.

The Nasdaq Composite dropped 3.0% to close at 1600, continuing the secondary cycle down-trend.
The S&P 500 closed below the 1070 level, at 1054.
Berkshire Hathaway
Warren Buffet's investment icon achieves a 52% rise in first-quarter profits due to higher insurance prices. (more)
ASX Australia
The All Ords closed down at 3279 on weak volume, approaching the correction target of 3230 to 3240.

ANZ chief John McFarlane has exercised 1 million share options.
Chaikin Money Flow is strengthening but MACD still looks weak.

Forrest quits Anaconda [ANL]
The founder of Anaconda Nickel severs his remaining ties with the company. (more)
MACD has signaled a number of bullish divergences, all of which have failed to deliver, while Chaikin Money Flow has signaled strong distribution.

Sectors: Banks
The banking sector continues its strong up-trend with the index making new highs and relative strength (price ratio) rising.


Short-term: Avoid long.
Medium-term: Wait for the All Ords to form a base.
Long-term: Wait for the Nasdaq or S&P 500 to form a base.

Colin Twiggs

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