Trading Diary
December 4, 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 closed up more than 1% at 9893, on reasonable
volume. The strength of this short-term rally will give an
indication of the state of the intermediate rally of the
past 2 months. The Nasdaq rose 4% to close at 1634, near to
its 2 month high.
Cisco
Australia - ASX
The All Ords closed lower at 3263 on
reasonable volume. The
MACD Histogram, often used by short-term
traders to signal market direction, has turned down at
[S], confirming the decision to avoid new long positions.
Have a strategy and stick to it
Conclusion
The direction of the Dow and the All Ords are both uncertain.
Short-term trades: Avoid new entries and tighten up
stops on remaining positions.
Long-term trades: Wait for a correction on the
secondary cycle.
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.