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Trading Diary
December 5, 2001

This is my daily 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 surged more than 2% to close at 10114, breaking through the 10000 resistance level on strong volume. The Nasdaq rose a further 5% (after 4% yesterday) to close at 1720, the highest close since August. Buyers are back in control of the market and the rally continues.
 
Australia - ASX
The All Ords respected the 21-day moving average at [R] and continued on its up-trend, closing at 3286 on low volume. Expect a strong showing today after the overnight performance of the Dow.
 

 
Banks
Bank stocks rallied on the back of a further 0.25% rate cut by the Reserve Bank. (more)
The index is still in a down-trend.
 

 
But Westpac [WBC] and Commonwealth [CBA] appear to be turning around.
 

 




Conclusion
We now have clear up-trends on the Dow and the All Ords. Entries this late in the trend are always higher risk so only enter trades where the stop loss can be set within a 2% limit.
Long-term trades: Wait for a correction on the secondary cycle. Don't hold your breath - it could take a while.
 
Colin Twiggs
 
 
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