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Trading Diary
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 Terms of Use .




USA
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
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 economy.

Australia  (ASX)
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.
 

 
Wesfarmers [WES]
Earnings jumped 86% in first quarter earnings after the Howard Smith/BBC Hardware takeover. Earnings per share increased 74%. (more)
 




Conclusion
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.
 
Colin Twiggs
 


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