November 6, 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
The Dow and S&P 500 surged strongly after the
announcement of the latest rate cut, the Dow closing at 9591
on strong volume, just below the 9600 resistance level. The
S&P 500 closed at 1118, above its
recent resistance level and the Nasdaq 100 did
likewise at 1523.
The Fed cut the overnight bank lending rate to 2.0 %,
the lowest level in 40 years.(more)
The aggressive stance is as
important as the actual rate cuts - it usually
takes 12 to 18 months for the effect to filter through the
The trend continues. The All Ords again respected the 21-day
moving average at [R], breaking above the 150-day moving
average but on low volume.
Earnings jumped 86% in first quarter earnings after
the Howard Smith/BBC Hardware takeover. Earnings
per share increased 74%. (more)
I may be erring on the side of caution, but I will wait for
the Dow to break above 9600 on strong volume, confirming
that it has resumed the up-trend.
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