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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 0.6% to close at 8402 on higher volume. The index has formed a bullish ascending triangle with resistance at 8552.
The intermediate trend is down. A rise above 8552 will signal reversal to an up-trend; a fall below 7903 will signal continuation.
Monday 17th's follow through remains valid (as long as the index holds above 7763).
The primary trend is down.

The Nasdaq Composite gained 0.4% to close at 1391.
The intermediate trend is down. A rise above the equal highs at 1430 will signal a reversal; a fall below 1336 will signal continuation.
The primary trend is up.

The S&P 500 closed up 5 points at 890.
The intermediate trend is down, until the index breaks above 904.
The primary trend is down.

The Chartcraft NYSE Bullish % Indicator is at 46% (April 14), after completing a Bull Correction buy signal. 

Market Strategy

Short-term: Long if the Dow rises above 8552; short if the Dow falls below 8109.

Intermediate: Long only when the Dow/S&P primary trend reverses upwards; short if the Dow falls below 8109.
Long-term: There are already two bull signals: the March 17 follow through day and the NYSE Bullish % signal. Wait for confirmation from a Dow/S&P primary trend reversal.

Industrial output falls
Industrial production fell a sharp 0.5% in March, according to the Federal Reserve, after a 0.1% fall in February. (more)

Intel
Intel reports first-quarter earnings of 14 cents a share, against expectations of 12 cents. (more)

ASX Australia

The All Ordinaries rallied to 2932 on higher volume.
The intermediate up-trend continues. The index is testing the long-term downward trendline and the intermediate trendline has been broken; so we should be alert for signs of a reversal. 
The primary trend is down.

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

Market Strategy

Short-term: Long, provided that the index remains above 2918 (keep stops tight in case of a false break); short if the index falls below 2888.

Intermediate: Long if the primary trend reverses up (XAO above 3062); short if the intermediate trend reverses down (below 2888).
Long-term: There is already a bull signal: the March 18 follow through day. Wait for confirmation from the primary trend reversal.

ANZ Bank [ANZ]
Last mentioned on March 25, 2003.
In February 2003 ANZ broke downwards from a stage 3 descending triangle which had formed after a long up-trend.
This turned out to be a bear trap, with price breaking back above resistance at 17.00 and penetrating the upper border of the triangle.

Relative Strength (price ratio: xao) is rising; Twiggs Money Flow (100) shows accumulation after a bullish divergence.

The downward trendline [A] - [G] has been penetrated after a higher low at [L]. The high at [M] is followed by a trough which respects the trendline. 

MACD and Twiggs Money Flow (21) are bullish.

The pull-back to [14], after the high at [13], is on light volume and of short duration (4 days); and price held above support at 17.60. The stock appears to be respecting the long-term downward trendline from above. A break above the high of 18.68 will be a bullish signal and have a target of 20.60 [A].

A break below 17.60 would be bearish.

Colin Twiggs

The key to success in most sports is to perform the basics better than anyone else:
study each movement; break it down into its component parts; and practice until you master it.
The same holds true for trading stocks.

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