daytrade diaries... september 24 part 2

Half-time round-up:

A thumbs-up from the Reserve Bank for local banks wasn't enough to keep stocks in positive territory this morning after a weak lead from Wall Street.

At lunchtime the ASX 200 was down 30 points or 0.64% at 4704 and trending back towards the opening low of 4692. Financial stocks bucked the downtrend until noon but fell away despite a pat on the back from the Reserve Bank. In its half-yearly Financial Stability Review, the RBA said local banks had outperformed many of their peers during the GFC and are well positioned for a rebound in the global economy.

Health was the pick of the sectors at break-even but the rest of the market sank. Metals & mining was down 1.4%, materials -1.1%, gold -1.4% and consumer discretionary -1.2%.

Asian markets were mixed. Japan surged 1.72% as it played catch-up after an extended public holiday, but Hong Kong sagged 2.09% and Shanghai was down 0.57%. Dow futures improved during the morning to -1. The spot gold price inched back to $1009.10 and crude oil futures recovered some of last night's losses, up 35 cents at $68.51.

No real fireworks this morning but a few bounce opportunities. Caught NTU near its low and took a few points off LNG. In and out of FXJ for peanuts - should have been more patient. Got into KAR too early and in the end was relieved to escape for brokerage.

Potential overnight holds: As mentioned earlier, I won't add before the close today in light of uncertainty in the US. But if conditions are positive tomorrow: GUD looks like breaking out. PRR is usually good for two higher days after a breakout. MCW looks poised to push for a new high.