Trading Diary
November 9, 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 closed at 9608, above the 9600 resistance level, but on such low volume that it signals further uncertainty. The Nasdaq and S&P 500 also posted weak gains.
 
Australia  (ASX)
The All Ords still shows uncertainty, closing at 3221. A number of analysts are convinced that this is a bear rally.
 
What is a bear rally?
Take a look at the All Ords in 1998: A lower peak formed at [LP] before a sharp correction to [LT]. If a rally fails to match the peak of the previous rally [P] the market tends to fall away, testing the support level formed by the previous trough [T]. (more on Dow Theory)
 

 
 
Lion Nathan [LNN]
The Australasian brewer delivers double-digit growth, with some clever accounting: Losses of $48.5million from the write-down of hotel assets are offset against profits from sale of investments. (more)
 




Conclusion
More uncertainty. Keep your stop losses tight and wait for clear direction from the market.
 
 
Colin Twiggs
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Colin Twiggs

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.