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Trading Diary
November 5, 2001

This is my daily short-term stock trading diary. It is 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
The Dow is making good progress, having risen overnight by more than 1% to close at 9441. Although this is identified as a market turning point by William O'Neill, wait for a break above the 9600 resistance level to confirm the resumption of an up-trend.
 
More rate cuts expected
Economists are expecting the Fed to cut the overnight bank lending rate to 2.0 %.(more)

Australia  (ASX)
The All Ords is drifting lower but remains above the 21-day moving average.
 

 
Building Materials Sector
The relative strength of the Building Materials Index has declined noticeably over the past few weeks. Take a look at the Price Ratio indicator below:
 

 
AMP Limited [AMP]
Net cash flows fell by 60% in the third quarter, reflecting worldwide investor nervousness with equity markets. Management are still predicting double-digit growth in operating margins. This will be difficult to sustain if outflows continue. (more)




Conclusion
We are still in "boredom" mode with no significant market signals.
Hold on to existing long positions but tighten up on Stop Losses
 
Colin Twiggs
 


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