Trading Diary
November 28, 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 fell more than 1%, to 9711, on strong volume, while the Nasdaq closed down more than 3% at 1557. This may be the end of the bear rally, but we have to wait for the next short-cycle rally to confirm this.
 
The Fed detects weakness
The Fed's beige book report highlights weakness in many sectors of the US economy. (more)
 
Australia - ASX
The All Ords traded down throughout the day and then spiked up to close at 3291, the same as Tuesday. The up-trend is still intact, for the moment.
 

 
 
Macquarie Bank [MBL]
Macquarie has traded with a narrow range over the past few weeks. Surges in volume on the last two corrections warn us to expect a breakout in a downward direction.
 

 




Conclusion
Wait for the Australian markets to react to developments in the US. Tighten up stops and avoid new trades.
Long-term trades: Wait for a correction on the secondary cycle.
 
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.