daytrading jan 22 afternoon

Thanks Endless and other fellow legionnaires.

Half-time round-up:

The Australian share market extended its 20-month high this morning before retreating with most Asian markets ahead of a Bank of Japan policy decision with broad implications for regional stocks.

At lunchtime the ASX 200 was seven points or 0.2% weaker at 4769 after breaking 4800 early in the session for the first time since May 2011. Industrials and utilities, both up 0.5%, were the pick of the sectors. Gold -1.7% and IT -0.8% brought up the rear.

Asian markets were mixed as traders awaited the outcome of a Bank of Japan policy meeting that is expected to produce more stimulus measures. Shanghai dropped 0.4%, Hong Kong's Hang Seng 0.05% and Japan's Nikkei trimmed an early advance to 0.07%. Dow futures were recently down nine points or less than 0.1%.

"There's a lot riding on the Bank of Japan meeting today," Shane Oliver, head of strategy at AMP Capital Investors, told Bloomberg. "The change of economic policy in Japan, the switch to much easier monetary policy, is a huge positive. The US economy is looking a bit stronger and the Chinese economy looks to have bottomed in terms of its growth rate. The global picture is looking a lot more favourable and that will in turn underpin further gains in share markets."

Crude oil futures pulled back four cents this morning to US$95.43 a barrel. Spot gold was 20 cents firmer at US$1,689.90 an ounce. The dollar was buying $US1.051.


The XJO seemed to develop a touch of vertigo after touching 4800. Softening US futures and a negative open in China didn't help - can't see what's driving that, if anything. If in doubt, blame profit taking. AKK always looked the most likely source of a trade today and so it proved. For once I had the patience to wait until it hit 2.7. Also caught IRE on retrace to the low 8.20s. Yesterday's plunge on BPT doesn't look quite so stupid now, even if the rebound stalled just below my target today.