daytrade diaries... august 6

Morning traders.

Market wrap: Stocks look set to recover some of yesterday's losses after a bright night for key commodities.

With 30 minutes left to trade, the SPI futures index was up 16 points at 4233 despite falls on European and American stock markets.

Equities in the US slid sharply at the open after disappointing economic data and declines in Asia and Europe, but pared losses as the day wore on. The S&P 500 finished the session 3 points or 0.29% lower, the Dow lost 0.42% and the Nasdaq 0.91%.

The recovery in the US was fronted by financials, with banks up 4.4% on the heels of a 66% surge in AIG, REITs up 4% for a second day of strong gains and airlines, up 4%.

Oilers lost ground despite a V-shaped rally in crude futures as buyers ignored rising US inventories and focused on the weakening US dollar. Crude futures were recently up 0.77% at $71.78 after earlier dipping under $70.

Gold futures were dragged down by the glum morning mood in the US but pared losses to trade this morning at $964.90, down less than $3 on yesterday's US session end.

Base metals continue to shine. Copper rose for a fifth day to a 10-month high as this week's upbeat global manufacturing data continues to fuel demand. On the London Metal Exchange, copper rose 2.5%. Aluminium, zinc, nickel, lead and tin all carved out new 2009 highs.

Local unemployment figures are released today at 11.30 am. Investors will watch for confirmation that Australia continues to skirt the worst of the financial crisis.

TRADING THEMES TODAY

STRENGTH: Last night's V-shaped action in the US suggests any weakness will be viewed as a buying opportunity. An American analyst said: "There's been buyers on the dips every day." Of course, unexpected bad news could change that in an instant but for now it's a clue that there are further gains ahead in this long rally. However, we can expect some caution on our market today ahead of tonight's US unemployment figures.

NICKEL: Some of our nickel miners had perhaps run ahead of themselves and the sector copped a right thumping yesterday. Today may be a day too soon, but opportunities develop when share prices head in one direction and the price of nickel in the other. On the watchlist for possible re-entry: PAN, MRE, WSA, IGO, PEM.

REPORTING SEASON: The local profits season creaked into action yesterday and got off to a mixed start with AXA advancing and the DJS result sparking a retreat across the retail sector. Companies reporting today include: TAH, AWC, AQP and BKN.

Good luck to all.