daytrades may 7 afternoon, page-2

Thanks HLL

Not surprisingly, Aussie stocks are in negative territory at noon after responding to a night of global turbulence. A suspected trading error sparked Wall Streets biggest ever sell-off, creating widespread panic across world markets and causing investors to retreat from riskier assets.

The big banks are once again leading the declines, while resources stocks have gained ground after plunging earlier this week.

All Ordinaries index was down 45 points, or .99 per cent, at 4,553 points.

Analyst said "The resource rent tax announced last Sunday has obviously affected a large proportion of our markets. A downward spiral in terms of the action and reaction taken over the Greek situation is starting to cause concern."

In economic news: Building activity expanded for a second straight month in April amid a rebound in demand for apartment blocks. The Australian Industry Group-Housing Industry Association performance of construction index rose 4.8 points last month to a read of 55.8. The number is above the 50 level which separates expansion from contraction.

Rio Tinto Ltd (RIO) has approved the revival of a US$400 million iron-ore expansion project in Canada that was shelved in 2008. Rios Iron Ore Company of Canada operations will lead the expansion programme with the aim of increasing annual concentrate capacity by four million tonnes to 22 million tonnes by 2012. Rios iron ore chief Sam Walsh says the expansion shows the companys confidence in iron ore as a commodity.

engineering firm Worley Parsons Ltd (WOR) says it expects its full year earnings to be in line with guidance after an encouraging increase in activity among its customers. The company has confirmed that net profit for the 2010 financial year is likely to be between $280 and $320 million. It expects earnings growth in the second half of the financial year and is confident its medium and long-term prospects remain positive based on a competitive position and strong financial capacity. Shares in Worley Parsons are 3.65% lower at $24.54.

The market is a sea of red at midday, with all sectors in negative territory. The sector with the smallest losses is the Materials index, down 75 points at 11,423.

The worst performing sector is the Financials excluding the Real Estate Investment Trust index, down 194 points to 5,202.

Gold is trading at US$1,201.50 an ounce and the Aussie dollar is trading at 88.49 US cents.

MORNING TRADES

KZL: .605c/63c
HUN: 66c/.695c
FMG: $4.18/$4.25
IPL: $2.99/$3.03
PDN: 3.72/3.73

http://www.marketwatch.com/
http://www.thebull.com.au/
http://www.news.com.au/business/

How to Invest in Speculative Stocks
Sell or trade your speculative stock immediately after it has reached your target point, unless there is another catalyst. It may be difficult to leave a winning stop, but you must justify staying, or you may lose money.