daytrade diaries... july 24

Morning traders. And it should be a cracker.

Market wrap: Australian stocks are set to play catch-up today after positive U.S. profit results and housing news blasted North American and European markets higher.

Key U.S. stock indexes notched up milestones after earnings reports from AT&T, EBay, Ford and 3M beat analyst expectations and existing home sales rose in June. The Nasdaq had its 12th straight gain, its longest winning run since 1992, the S&P 500 broke the 950 resistance level and the Dow Jones index closed above 9000 for the first time since January. At the closing bell, the Dow was up 2.11%, the S&P 500 2.33% and the Nasdaq 2.45%. The rally gave markets in Europe a late boost, sparking gains of 1.5 - 2.5%.

In a huge night of company reports, not all were well received - McDonald's and SanDisk were hammered and there were poorly-received after-market reports from Amazon and Microsoft. However, the overall verdict is clear: investors like what they have heard this reporting season. The rally carried all sectors higher.

Optimism in equity markets spilled into commodities, where crude oil futures finished at a three-week high. Oil added more than 2% to hit $66.68. Gold endured a choppy session, running from $949 up to $957 and back again, recently trading at $948.50. Base metals were mixed and little changed as most wrestle with resistance levels. Copper slipped 1% and aluminium added 2%.

Futures traders expect a boom opening to our market today. With 30 minutes left to trade, the SPI was up 72 points at 4107.

TRADING THEMES TODAY

ENERGY: Oil has been travelling in only one direction since it hit its recent low under $60 two weeks ago. Another run into the $70s looks like a matter of time. Indexes of US oilers rose 2.5 - 4% last night. We should see similar gains here.

US FUTURES: Amazon and Microsoft both reported poor results after the US closing bell, taking some of the shine off last night's action. Their shares were knocked down 7-9% in after-market trade. That sentiment may flow into tonight's trade, so it's worth keeping an eye on US futures for clues to tonight's direction. If US futures look ugly, many of the opening prices here will be the highs for the day.

Good luck to all.