Trading Diary
January 3, 2002

These extracts from my daily stock trading diary are intended to illustrate the techniques used in short-term share trading and should not be interpreted as investment advice. Full terms and conditions can be found at Terms of Use .




USA
An hour before the close, the Dow was up 0.5% on reasonable volume. There may well be a test of the 10200 resistance level before the close. The bearish MACD divergence continues. 
The Nasdaq climbed almost 3% to reverse the down-trend - a higher trough followed by a break above the level of the previous peak.
 
Tech gains lift the market
Slightly increased chip sales have lifted the tech sector. (more)
 
Australia - ASX
The All Ords closed down at 3359 on light volume. It appears that the big money is at the cricket and will only return to the market next week (or maybe by Friday afternoon - the way the South Africans are playing).
 

 
I am still anticipating a downward correction after the bearish MACD divergence.
 




Conclusion
Here we go again:
Short-term: Tighten up on stop losses and avoid new entries.
Long-term trades: Wait for a correction on the secondary cycle.
 
Colin Twiggs
 
 
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