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Trading Diary
April 7, 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 .

The Dow shows a gravestone reversal signal, testing resistance at 8500 before retreating to close at 8300. The index was up 0.3% on higher volume.
Monday 17th's follow through signal remains valid (as long as the index holds above 7763). 
The intermediate cycle is down; a rise above 8552 will signal a reversal; a fall below 7903 will signal continuation.
The primary trend is down.

The Nasdaq Composite formed an open-close reversal: the index gapped up at the opening to reach a high of 1430, but retreated sharply to close only 6 points up at 1389.
The intermediate trend is down; a rise above 1430 will signal a reversal.
The primary trend is up.

The S&P 500 also shows a gravestone reversal, closing 1 point higher at 879.
The intermediate trend is down, until the index breaks above 895.
The primary trend is down.

The Chartcraft NYSE Bullish % Indicator is at 44% (April 4), after a Bull Correction buy signal. 

The market surged on news that coalition forces had entered Baghdad, but strong selling emerged before the close. (more)

New York (17.40): Spot gold is lower at $US 323.10.

ASX Australia
The All Ordinaries rallied strongly to 2942, and appears set to test the long-term downward trendline. The index closed up 46 points, but low volume places a question mark over buyers commitment.
The intermediate up-trend continues. 
The primary trend is down.

MACD (26,12,9) is above its signal line; Slow Stochastic (20,3,3) crossed to above its signal line; Twiggs Money Flow (21) is positive.

Short-term: Wait for a correction before taking further Long; short if the index falls below 2830.
Intermediate: Long if XAO is above 3062; short if the index is below 2666.
Long-term: Wait for the March 18 follow through and April 3 Bullish % signal to be confirmed by the intermediate signal.

Burswood [BIR]
Last covered on September 19, 2002.
BIR has formed a broad base above support at 0.60. We now see a higher low at [A] after a successful test of the support level.
Twiggs Money Flow (100-day) shows signs of accumulation.

Relative Strength (price ratio: xao) is rising; MACD is positive; while Twiggs Money Flow (21-day) hovers around the zero line after completing a bullish divergence in November.

The daily equivolume chart shows a power box at [5], but the breakout failed to hold above resistance at 0.77. Further consolidation just below the resistance level or a weak correction should present useful entry points. If the rally surges straight ahead it may be prudent to wait for a pull-back before entering.

The target for a breakout above 0.77 would be the 1.00 resistance level.

For further assistance see Understanding the Trading Diary.

Colin Twiggs

Opportunities flit by while we sit
regretting the chances we have lost.

- Jerome K Jerome.

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