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 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)
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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Author: Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.