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Trading Diary
December 30, 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 closed marginally higher at 8332 on normal  volume.
The primary trend is down and will only reverse up if the average rises above 9076 (the high from December 02).

The Nasdaq Composite lost 9 points to close at 1339.
The primary trend is up.

The S&P 500 closed 4 points up at 879. The index is ranging between 965 and 768, establishing a base.

The Chartcraft NYSE Bullish % Indicator appears stuck at 50% (December 27).

Retail sales soft
Wal-Mart, JC Penney and Federated Stores, owners of Macy's and Bloomingdales, report mixed results.

New York: Spot gold lost 470 cents to close at $US 344.20.

ASX Australia
The All Ordinaries recorded a 30-point drop to close at 2961 on low volume, headed for a test of support at 2920.
The index is ranging between 2915 and 3050, building a base.
Slow Stochastic (20,3,3) crossed to below its signal line; MACD (26,12,9) is above; Twiggs money flow signals accumulation.

Market strategy
For further guidance see Understanding the Trading Diary.

Short-term: Avoid new entries. The Slow Stochastic and MACD are on opposite sides of their respective signal lines.
Medium-term: Avoid new entries.
Long-term: Wait for confirmation of the bottom reversal signal.

Colin Twiggs

People err according to their own level.
It is by observing a person's mistakes that you can know his/her goodness.

- The Analects of Confucius 4:7.

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