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
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
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.
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
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
can be set within a 2%
Long-term trades: Wait for a correction on the
. Don't hold your
breath - it could take a while.
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