daytrade diaries... june 22

Morning traders.

Market wrap: The Australian stock market faces a third day of uncertain action after mixed signals from Wall Street and commodity markets on Friday.

Local futures traders have priced in zero change when our market opens today as global markets wrestle with the early arrival of the (northern) summer doldrums. In the US, the Dow slid 0.19% on Friday, while the S&P 500 rose 0.31% and the Nasdaq a healthier 1.09% on gains in the tech sector. US financials and precious metals miners made modest gains, while oil and gas companies retreated with the price of crude. Volumes were relatively low, considering Friday included quadruple witching options expiry.

Oil slipped back below $70 to $69.40, a fall of 2.5%. Gold made a small gain to $933.70 as the US dollar slipped but still recorded a third week of losses, its longest losing streak in two months. Copper rose in London trade but fell in New York as traders fretted about Chinese demand. The metal added 1.2% in the UK but slipped 0.9% to its first weekly drop in the US since mid-May. On the LME, aluminum rose 2.3%, lead added 1.2%, zinc 0.8% and nickel 1.3%.

The SPI futures market finished dead flat at 3863.

Hmmm. No easy leads today. The steam has gone out of the market in the last month, and the short-term direction is hard to pick as the end of the local financial year looms. Commentary on commodity markets seems increasingly bearish, with US oil inventories relatively high, according to analysts, and Chinese traders warning of weakening demand for copper. It’s all about selective snapshot trading again because we can no longer rely on a rising tide to lift all boats.

Good luck to all.