Trading Diary
December 5, 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 surged more than 2% to close at 10114, breaking through the 10000 resistance level on strong volume. The Nasdaq rose a further 5% (after 4% yesterday) to close at 1720, the highest close since August. Buyers are back in control of the market and the rally continues.
 
Australia - ASX
The All Ords respected the 21-day moving average at [R] and continued on its up-trend, closing at 3286 on low volume. Expect a strong showing today after the overnight performance of the Dow.
 

 
Banks
Bank stocks rallied on the back of a further 0.25% rate cut by the Reserve Bank. (more)
The index is still in a down-trend.
 

 
But Westpac [WBC] and Commonwealth [CBA] appear to be turning around.
 

 




Conclusion
We now have clear up-trends on the Dow and the All Ords. Entries this late in the trend are always higher risk so only enter trades where the stop loss can be set within a 2% limit.
Long-term trades: Wait for a correction on the secondary cycle. Don't hold your breath - it could take a while.
 
Colin Twiggs
 
 
Please forward this to your friends and colleagues.
To be included on our mailing list, reply to this Email adding MAIL ME to the subject title. All details submitted are protected by our Privacy Policy.
 
Back Issues
Click here to access the Trading Diary Archives.
 






Back Issues
Access the Trading Diary Archives.