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 down at 10049 on reasonable volume,
reacting to high job cut figures, but holding above the
10000 support level (resistance has now become support). The S&P 500 and
Nasdaq have also retreated but are still in an up-trend.
How high can the rally go?
More evidence of a recovery is needed to sustain
the present rally. (more)
Australia - ASX
The All Ords broke through resistance around 3300
to close at 3313 on weaker volume. The up-trend continues.
News Corporation [NCP]
NewsCorp stock has risen more than 9% over the last two days on
reports of a planned takeover of German media giant, Kirche
Gruppe. (more)
Banks
The Banks and Finance Index continues to weaken, with Relative
Strength (Price
Ratio) on the decline.
Conclusion
Short-term: Continue to look for entry signals where
the stop
loss can be set within a 2% limit.
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.