Trading Diary
June 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 .




USA
The Dow rallied more than 0.5% to 9645 on normal volume.
A break below 9500 will signal a primary bear-trend. The secondary cycle trends downwards.
Chartcraft's NYSE Bullish % Indicator has given a bull correction signal, warning investors to adopt defensive strategies. 

The Nasdaq Composite eased slightly to 1530.
The primary and secondary cycles continue downwards.

The S&P 500 gave up most of its gains to close up 3 points at 1030.
Primary and secondary cycles trend downwards.

 
Terrorism scare
A US citizen was arrested May in connection with al-Qaida plans to explode a radiological 'dirty' bomb in the US. (more)
 
Wal-Mart
Wal-Mart's rosy outlook helped the market overcome the terrorism scare. (more)
 
ASX Australia
The ASX was closed Monday.
 
BHP Billiton [BHP]
BHP plans a $1.7 billion expansion of its steel and coal operations as the steel industry recovers. (more)
Chaikin Money Flow shows a bullish divergence, while MACD and Relative Strength (price ratio: xao) are still weak.


 
 




Conclusion
 
Short-term: Avoid long. Maintain tight stop-losses.
Medium-term: Wait for the All Ords to signal a reversal.
Long-term: Wait for a bull-trend on the Nasdaq or S&P 500 (primary cycle).
 

Colin Twiggs

 
Please forward this to your friends and colleagues.




Back Issues
Click here to access the Trading Diary Archives.






Back Issues
Access the Trading Diary Archives.


Colin Twiggs

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.