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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