daytrade diaries... may 29

Morning traders.

Market wrap: US stocks have bounced higher in thin trading after a busy night of mixed economic news.

The major indexes added 1.2% (Dow, Nasdaq) - 1.5% (S&P) as investors weighed up a successful bond sale and better-than-expected jobless claims data and durable-goods orders against disappointing new home sales, the impending bankruptcy of GM and the relentless rise of crude oil.

Energy stocks fronted gains as crude broke through $65 for the first time since November after US inventories fell for the third straight week. Crude has since eased back to $64.76, still a rise of 2.5%. Financial stocks were strong and gold miners made gains as bullion turned sharply higher, touching $964 before a recent decline to $960.

Base metals reversed yesterday's weakness, with copper and nickel particularly bullish. Nickel hit a new six-month high and copper looks poised to break through the old resistance level.

Futures traders seem unconvinced by the US action. The SPI rose just 29 points to 3765.

Two thoughts: firstly, the US bounce was small and on low volume, so it doesn't alter the current mood of uncertainty on global markets; and secondly, nevertheless the strong gains on commodity markets should provide plenty of short-term trading prospects for today. Oilers, goldies and nickel and copper miners should benefit.

It will be worth keeping an eye on the live gold price here for any further pullback: http://www.kitco.com/charts/livegold.html.

Good luck to all.