Coverage of stocks will resume next week.
January 07, 2003
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 formed an inside day, down 0.4% at 8740
on average volume.
The index is forming a base between 7500 and 9130.
The primary trend is down and will only reverse up if the average rises above 9076 (the high from December 02).
The Nasdaq Composite closed 10 points up at 1431.
The primary trend is up.
The S&P 500 formed an inside day, 7 points down at 922.
The index is ranging between 965 and 768, establishing a base.
All three indices have failed to re-test support at their 6-month lows, a bullish sign.
The Chartcraft NYSE Bullish % Indicator increased to 52% (January 06).
The index is forming a base between 7500 and 9130.
The primary trend is down and will only reverse up if the average rises above 9076 (the high from December 02).
The Nasdaq Composite closed 10 points up at 1431.
The primary trend is up.
The S&P 500 formed an inside day, 7 points down at 922.
The index is ranging between 965 and 768, establishing a base.
All three indices have failed to re-test support at their 6-month lows, a bullish sign.
The Chartcraft NYSE Bullish % Indicator increased to 52% (January 06).
Senate extends benefits
The Senate extended unemployment benefits, for about 750,000 laid-off workers, until June 01.
Gold
New York: Spot gold is down 380 cents at $US 346.90.
The Senate extended unemployment benefits, for about 750,000 laid-off workers, until June 01.
Gold
New York: Spot gold is down 380 cents at $US 346.90.
ASX Australia
The All Ordinaries made a false break above resistance,
retreating to close down at 3043 on average volume. The
gravestone candlestick signals that a reversal of the
short-term trend is likely.
The index is ranging between 2915 and 3050, forming a base.
A break above 3050 will signal a primary trend change to an up-trend; the last correction taking the form of a line. Look for volume confirmation.
Slow Stochastic (20,3,3) is above its signal line; MACD (26,12,9) is above; Twiggs money flow signals accumulation.
The index is ranging between 2915 and 3050, forming a base.
A break above 3050 will signal a primary trend change to an up-trend; the last correction taking the form of a line. Look for volume confirmation.
Slow Stochastic (20,3,3) is above its signal line; MACD (26,12,9) is above; Twiggs money flow signals accumulation.
Market strategy
For further guidance see Understanding the Trading Diary.
For further guidance see Understanding the Trading Diary.
Short-term: Long if the index rises above 3062. The Slow
Stochastic and MACD are above their respective signal lines.
Medium-term: Avoid new entries.
Long-term: Wait for confirmation of the
bottom reversal signal.
Colin Twiggs
There is no freedom from risk. There is no freedom from
fear.
There is no freedom from pain. There is no freedom from the possibility of failure.
But there is freedom in acceptance of all of these as part of life,
and moreover, as the least important part of life.
- Victor Sperandeo: Trader Vic - Methods of a Wall Street Master
There is no freedom from pain. There is no freedom from the possibility of failure.
But there is freedom in acceptance of all of these as part of life,
and moreover, as the least important part of life.
- Victor Sperandeo: Trader Vic - Methods of a Wall Street Master
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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.