Columns/Diary

Darryl Morley is a well known and respected newspaper columnist and professional trader, who is a former stockbroker. He has been wrote his avidly followed Day Trader column on trading and technical analysis for the Melbourne Herald Sun and the Hobart Mercury for over 20 years.

Darryl is likely unique, in that he actually writes about his own trades, his reasoning for selecting or rejecting certain stocks, how he sets his targets, his stops, his exit strategies. He’s also not shy about staying out of the market if the signals are not right and explaining why. This is very different from most talking heads, who are not dealing with their own money.

New columns are updated to this site every week.

These columns are written and published as a chronicle of Darryl’s trading. Any information provided is of an educational nature only. Please note that we are NOT a stock tipping service, either through the newspaper column nor through the workshops. Our hope is that by watching and learning from Darryl’s trading technique, you can start to learn to take control of your own finances, which we believe is especially relevant in today’s turbulent market.

Day Trader column for September 1 - 2015

Last week saw the Indices bounce off 5,000 which is a strong support going back to 2006 when the Indices first broke above 5,000. Last week I suggested 4,800 was the next target level on the way down. Well the All Ords and the S&P/ASX 200 both only went as low as 4,930 but the SPI contract which trades against the S&P/ASX 200 touched 4,805 on the open last Tuesday and it also finished the week at a 28 point discount to the index indicating to me that the market still lacks any strength to the upside.

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Day Trader column for August 25 - 2015

Our market has now broken the uptrend line which has been in place since the spike low in 2009. After the break of 5,400 the next support and target is now around 4,800 and as of Fridays close the SPI Futures contract was at a 46 point discount to the ASX/S&P 200 which is strong sign the market will trade lower.

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Day Trader column for August 18 - 2015

Stopped out of both stocks bought just a week after purchase, which is not a good sign for the market. Last week I said we had not seen a weekly pivot point formed, however that was sorted last week as both the All Ords and the S&P/ASX 200 as well as the SPI 200 all formed weekly pivot points and closed close to their lows for the week.

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Day Trader column for August 11 - 2015

Despite the largest one day fall in several years on Friday, we still did not see a weekly pivot point form. However, the only reason the weekly pivot point did not happen was the small intraday spike last Tuesday, which for a short time, took the indices above 5,700 before reversing. The other interesting observation was the market closed right on the top of the downtrend line formed since the highs early this year. It may be that the fall will be arrested at this level, but as Fridays move was the longest daily move for the downtrend I expect lower lows, so if the market is to reverse from around here we should see at least a lower low intraday before any move up begins.

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Day Trader column for August 4 - 2015

It has been a long time since our market has looked positive. Last week I discussed the possibility of a weekly pivot point to the downside forming. Not only did the All Ords not close below 5,539, the level at which a weekly pivot point to the downside would have formed but instead it reversed the move down on the daily chart and formed a daily pivot point to the upside on Wednesday and continued up on Thursday and Friday. There are now enough elements in place to indicate the move up may be sustainable. The downtrend which has been in place since April has been broken, the weekly reversal has been formed and we saw the daily pullback last week reverse to the upside and it will likely break the 5,700 level this week after some possible hesitation.

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Day Trader column for July 28 - 2015

Early last week saw two days when the indices had small moves to the upside but this was followed by three days when the market moved back down and Friday, intraday, revisited the recent downtrend line and bounced off it. It now remains to be seen if this week sees it move below this line and if it does, then it puts the potential move up in doubt.

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Day Trader column for July 21 - 2015

Another week and another weekly low, and as the index moved up early last week it did not quite make it to the weekly downtrendaAs I have said before a week is a long time in the market and last week certainly demonstrated that. A week ago my weekly scan barely brought up a dozen stocks which were holding out against the weight of the market fall. line before falling away again. In last week’s column I made the comment that if a weekly close formed on the All Ords below 5,515 a weekly pivot point would then be in place. As it turned out, last Fridays close was 5,478, so now a weekly pivot point has formed to the downside which has negated the pivot point to the upside four weeks ago.

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Day Trader column for July 14 - 2015

Another week and another weekly low, and as the index moved up early last week it did not quite make it to the weekly downtrend line before falling away again. In last week’s column I made the comment that if a weekly close formed on the All Ords below 5,515 a weekly pivot point would then be in place. As it turned out, last Fridays close was 5,478, so now a weekly pivot point has formed to the downside which has negated the pivot point to the upside four weeks ago.

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Day Trader column for July 7 - 2015

Last week I was concerned about the size and rate of the move down. I wanted to see a slow, low volume move down on the Indices and what we saw was two days down on expanded range and increased volume.

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Day Trader column for June 30 - 2015

If our market moves up from last week’s lows without trading below the low of June 10 and continues above last week’s high it will then break the recent downtrend. Last week’s high formed the third point on the downtrend line drawn from the April 28 high. For a trend line to exist it is universally accepted it should have at least three points on the line. We now have that on the two market indices and the SPI Futures contract, so a break of this downtrend line along with the weekly pivot point formed two weeks ago is building a strong case for the uptrend to be renewed.

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