daytrades feb 9 morning ...

Good morning Traders,

US Market Report:

"U.S. stocks posted another day of solid gains Tuesday, with the Dow Jones industrial average climbing for the seventh straight day, as traders cheered news in the consumer sector and looked past China's latest interest rate hike.

The Dow's 70-point gain came despite the People's Bank of China announcement early Tuesday that it would raise bank's borrowing and lending rates by a quarter percentage point. The move, the bank's third since October, comes as Chinese policymakers look to gradually cool the world's second-largest economy without halting growth.

"The China rate hike wasn't a surprise, but it shows that they're being proactive about curbing inflation," said Frank Davis, director of sales and trading at LEK Securities.

Outside of the China news, traders had little to act upon. Without any major negative news, traders said stocks will probably continue to float slowly higher. The Dow has been up six of the last seven sessions and 10 of the last 12 sessions.

"There's been this general optimism pushing the market right now that has been difficult to overcome," said Marc Pado, chief market strategist for Cantor Fitzgerald. "Retail investors are coming back, money is returning from overseas and it's frustrating investors who've wanted to short this market." " [Source: cnnmoney.com]

Market Reflections - Tuesday, 8th February, 2011

"An overnight rate rise in China is no surprise but it does highlight the risk that inflation may continue to drive fuel and food costs higher. Citing the risk of inflation, FOMC voter Richard Fisher said he can't imagine voting for any new quantitative easing in what are very strong comments for usually circumspect Federal Reserve officials.

Silver, seen as a hedge against inflation, shot up 3-1/2 percent to a record $30.36, taking gold along for a one percent rise to $1,365. Interest rates rose on Fisher's comments and following surprisingly weak investor demand at the monthly 3-year Treasury note auction. The Treasury auctions 10-year notes tomorrow with the 10-year yield up 10 basis points to 3.73 percent.

The Dow, boosted once again by favorable company results and new mergers, extended its winning streak to seven straight sessions, up more than a half percentage point to 12,233." [Source: bloomberg.com]

Market Focus in the US this evening

"Watch the Chinese markets and the return from their Lunar New Year." [Source: bloomberg.com]
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The DJIA Index finished the last trading session: Up 71.52 points; and
The SPI Futures are currently: Up 14 points atm.
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Of note in the US this evening:

Ben Bernanke speaks [ Market moving indicator]
[Testifies before House Budget Committee on economic, employment and budget issues in Washington.]

EIA Petroleum Status Report [ Merits extra attention]

Dennis Lockhart speaks
[Atlanta Federal Reserve Bank President - Speech to the CFA Society in Atlanta.]

...AND...

Of note in Australia today:

Westpac Consumer Confidence (Feb) [ Moderate volatility expected]
[The Westpac Consumer Confidence released by the Faculty of Economics and Commerce Melbourne Institute captures the level of sentiment that individuals have in economic activity reflecting respondents' evaluations of their family finances over the past and coming year, expectations about the one-year and five-year economic conditions and views about current buying conditions for major household items. Generally speaking, a high reading is seen as positive (or bullish) for the AUD, whereas a low reading is seen as negative (or bearish).]

[Sources used: bloomberg.com; dailyfx.com; fxstreet.com; nasdaq.com]
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Gold is currently trading Up $12.10 & is sitting at US$1,364.20/oz atm [Source: Kitco]
Oil is currently trading Down $0.54 & is sitting at US$86.94/bbl atm [Source: Bloomberg]
The Dollar: The AUD is currently trading @ $1.0144c against the US Dollar [Source: Forex. Live]
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Have a great day trading today all.

Cheers, Tweets

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