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Trading Diary
September 23, 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 appears set to test support at the July low of 7500, closing 1.4% down at 7872 on average volume.
The primary cycle trends down.

The Nasdaq Composite Index has broken below the July support level of 1200, closing down 3% at 1184.
The primary trend is down.

The S&P 500 lost 12 points to close at 833. The next support level is 800.
The primary trend is down.

The Chartcraft NYSE Bullish % Indicator reflects a bear confirmed signal, falling to 38% (September 20).



Bond Yields
US 10-year treasury notes, at 3.68%, are trading at the lowest yields since 1958. (more)




Gold
New York: The spot gold price rose 60 cents to $US 322.70.



ASX Australia
The All Ordinaries closed down 26 points at 3001 on average volume. The next major band of support is at 2909 to 2940.
The MACD (26,12,9) and Slow Stochastic (20,3,3) are below their signal lines. Twiggs money flow signals distribution.
The primary trend is down.





Woodside Petroleum [WPL]
WPL is in a broad stage 3 top, forming a descending triangle over the past 18 months. Relative strength (price ratio: xao) is positive but the stock now appears set to test support at 12.30. A break below this level would have a target of 8.15 (12.30 * 2 - 16.45).





The daily chart shows MACD weakening and Twiggs money flow signals distribution.






Conclusion

Short-term: Short. The Slow Stochastic and MACD are below their respective signal lines. 
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


Thought for the Day:

Success is not a destination, a place you can ever get to; it is the quality of your journey.

 - Jennifer James






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