Trading Diary
December 11, 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
Another small loss, with the Dow closing at 9888 on strong volume, encountering resistance at the 10000 level. The Nasdaq closed slightly up, at 1661, while forming an inside day which signals market uncertainty.
 
Fed cuts rates to lowest in 40 years
The Fed shaved another quarter % off the short-term funds rate, bringing it to 1.75%. (more)
 
Merck spoils the party
Stocks of the drug maker Merck, a Dow stalwart, fell almost 10% on the announcement that it will not meet earnings forecasts. (more)
 
Australia - ASX
The All Ords closed at the 3300 support level on reasonable volume, as buyers continue to resist selling pressure.
 

 
Suncorp reaps merger benefits [SUN]
Suncorp-Metway doubles estimates of annual savings from the merger of its general insurance division with GIO, to $240 million. (more)
 




Conclusion
Short-term: Wait for uncertainty on the Dow to clear. Tighten up stop losses on existing positions.
Long-term trades: Wait for a correction on the secondary cycle.
 
Colin Twiggs
 
 
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