Day Trading Pre Open - 20 November 2018

Good Morning Fellow Traders,

Thanks @Quantum Torus @Ravgnome and AM Loungers. @Endless revealed himself as a SNAG and @mirren used to be a Swiss snow bunny. I am so over the trade wars and lacklustre iphone sales. Hopefully our market doesn't react.

The Dutch have their work cut out for them as they trail Germany 2-0 so far in the UEFA Nations League match. I'm glued to the screen.

The Australian share market has closed lower, weighed down by APEC trade tensions and a financial sector hit by more banking woes and the loss of a significant contract for Medibank Private.

The benchmark S&P/ASX200 index was down 36.9 points, or 0.64 per cent, at 5,693.7 at 1630 AEDT on Monday, while the All Ordinaries was down 36.4 points at 5,786.4.

"Even though we had some modest gains on Friday, some of the negative sentiment flowing over from the conversation had between US and China at the APEC summit has certainly put a dampener on the market at the start of the week," CommSec market analyst James Tao told AAP.

Woes in the Australian financial sector were led by Medibank Private dropping 6.14 per cent after surfacing from a trading halt on Monday sparked by the loss of a large Australian Defence Force contract.
Shares in Medibank, which was government-owned until its 2014 privatisation, were halted on Monday after the ADF told the insurer it would not extend its current arrangement with Medibank's Garrison Health Services past June next year.

Commonwealth Bank of Australia CEO Matt Comyn has fronted the royal commission admitting the bank failed to protect customers in preference of financial gain at their expense.

"We seemed to be caught reacting, responding, remediation, in an ever-increasing cycle of that without actually truly understanding the root cause, making the appropriate investments to actually prevent issues from recurring," he said on Monday.

Commonwealth finished Monday's trading down 0.58 per cent at $68.50, however ANZ plummeted even further down 0.79 per cent to $25.16.
Westpac and NAB were also down between 0.59 and 0.8 per cent.

Thanks to fall in the price of crude oil, energy stocks were a major drain on the Australian market with Caltex leading the losses, down 1.82 per cent to $26.40.
Woodside Petroleum and Santos fell 1.42 per cent and 1.13 per cent respectively, while Origin Energy lost 1.29 per cent.

After making significant gains of about 10 per cent on Friday, technology stocks AfterPay slipped down 8.77 per cent followed by Xero, down 5.26 per cent.

For the 177-year-old Fairfax Media company, Monday signalled an official end to it as an independent entity when shareholders voted in favour of the proposed merger with Nine Entertainment after a late bid from former Domain chief executive Antony Catalano failed.

The Australian dollar has bounced back despite China-US trade tensions, buying 73.06 US cents up from 72.68 US cents on Friday.

ON THE ASX:
* The benchmark S&P/ASX200 index closed down 36.9 points, or 0.64 per cent, lower at 5,693.7
* The All Ordinaries closed 36.4 points, or 0.63 per cent, lower at 5,786.4
* At 1630 AEDT, the SPI200 futures index was down 32 points at 5,690 points

CURRENCY SNAPSHOT AT 1630 AEDT:
One Australian dollar buys:
* 73.06 US cents, from 72.68 US cents cents on Friday
* 82.40 Japanese yen, from 82.39
* 64.1 euro cents, from 64.09
* 56.98 British pence, from 56.81
* 106.75 NZ cents, from 106.40

GOLD:
The spot price of gold in Sydney at 1630 AEDT was $US1,219.038 per fine ounce, up from $US1,215.01 on Friday.

The Dow Jones Industrial Average shed more than 400 points on Monday, as a slump in Apple shares battered the tech sector, with conflicting signals over the state of play between the United States and China on their trade dispute kept investors on edge.

Shares of Apple Inc fell 3.8 percent after the Wall Street Journal reported the company had cut production orders in recent weeks for all three iPhone models launched in September.
The iPhone maker’s stock, which has played a major role in powering a decade-long bull run for equities, is down nearly 20 percent from a record high in October following a disappointing holiday-quarter sales forecast and weak outlook from several of its suppliers.

The stock was the biggest drag on the technology sector, which fell 3.3 percent and was the top loser among the 11 major S&P sectors trading in the red.
Consumer discretionary stocks tumbled 2.1 percent and communication services fell 2.7 percent.

“Without the FANG leadership, including Apple, the market is going to struggle,” said Peter Cecchini, managing director and chief market strategist at Cantor Fitzgerald in New York.

Trading volumes were thin in a holiday-shortened week ahead of Thanksgiving on Thursday and a shorter session on Friday which brings a slight volatility to markets, traders said.

Shares of Apple suppliers were also hit, with Lumentum Holdings Inc, Universal Display Corp, Cirrus Logic Inc and Skyworks Solutions Inc down between 2.6 percent and 6 percent.
The rest of the FAANG group - Facebook Inc, Amazon.com Inc, Netflix Inc and Alphabet Inc - shed between 3 percent and 4.8 percent.

“There’s been a loss of trust in managements at Apple and Nvidia - both overpromised and underdelivered ... Rarely do you see these kind of moves in a holiday week,” said Doug Biben, founder and portfolio manager at BCM, Los Angeles.

At 12:59 p.m. EDT the Dow Jones Industrial Average was down 392.90 points, or 1.55 percent, at 25,020.32, the S&P 500 was down 40.74 points, or 1.49 percent, at 2,695.53 and the Nasdaq Composite was down 185.94 points, or 2.57 percent, at 7,061.93.

Over the weekend, Asia-Pacific leaders failed to agree on a communique for the first time ever at a meeting in Papua New Guinea with U.S.-China trade worries on the forefront.
U.S. Vice President Mike Pence said in a blunt speech on Saturday that United States will not back down from its trade dispute with China unless Beijing bows to U.S. demands, dampening Friday’s trade optimism that was fueled by President Donald Trump’s comments.

Boeing Co and Caterpillar Inc, seen as trade sensitive stocks, fell 4.8 percent and 2.5 percent, respectively.
Declining issues outnumbered advancers for a 2.46-to-1 ratio on the NYSE and for a 2.59-to-1 ratio on the Nasdaq.

The S&P index recorded 26 new 52-week highs and 16 new lows, while the Nasdaq recorded 16 new highs and 123 new lows.

Source: Netwealth Morning Business Roundup

Your bodies are going to thank me. On the menu this morning is a Brekkie Crumble and a Kale, Lime and Coconut Water Smoothie. And if you haven't already, I want you to head out for a walk before you sit down at your trading desk.




In consideration of others, PLEASE include the STOCK CODE in all your posts.

Happy trading, play nicely and make informed decisions.