Calling for the instance as a variable in the action is what I was missing. That did the trick, thanks!
				
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<parser trace="0" name="*** Monitor">
   <file>D:\program\log\@{log}</file>
   <rules>
      <rule name="Log Monitor">
         <match repeatCount="0" repeatInterval="1">\*\*\*</match>
         <event>LOGWATCH_TEST</event>
         <logName></logName>
      </rule>
   </rules>
   <macros>
      <macro name="log">.*\.log</macro>
   </macros>
</parser>