November 7, 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 retreated slightly to 9554 after briefly flirting
with the 9600 resistance line. The S&P 500 retreated to
1115 while the Nasdaq also performed weakly, giving up most
of its intra-day gains. Wait for the Dow to move
out of its 9000 to 9600 trading range.
Pushing a piece of string
A very good article on the steps the Fed and US
Treasury have taken to stimulate the US economy.
The All Ords opened near its daily high of 3225
then retreated to close at a daily low of 3190, a sign
that there may be further weakness on Thursday. The index
is still above its 21-day moving average, showing
that it is still in an up-trend. It would be risky to
enter this late in the rally, with indicators like the
Detrended Price Oscillator
showing trend weakness.
We are back in wait-and-see mode, waiting for the Dow
to break out of its present trading range, and waiting
to see the effect on the All Ords.
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