daytrade diaries... august 26

Morning traders.

Market wrap: Futures traders expect a positive open to our market today after modest gains in America and Europe despite weakening commodity prices.

With 50 minutes left to trade, the SPI futures index was up 15 points at 4410. European indexes hit new 2009 highs. The UK's FTSE rose 0.4%, the German DAX advanced 0.7% and the French CAC-40 index gained 0.8%.

Stocks in the US opened higher after surprisingly strong home prices and consumer confidence data, as well as the nomination of Federal Reserve Chairman Ben Bernanke for a second term. Home prices rose in the second quarter for the first time in three years. Consumer confidence hit its highest level since the start of the recession. "The data are confirming that the economy is probably already out of recession," said Peter Cardillo, chief market economist at Avalon Partners.

But a pullback in the energy sector after a slump in crude oil futures eroded much of early gains. The Dow closed 0.32% higher for a sixth straight gain, the S&P 500 added 0.24% and the Nasdaq 0.31%.

In a volatile night's trade, crude oil touched $75 a barrel, then collapsed to nearly $71 before recently trading at $71.86, down 3.1% for the session. Gold futures recovered some of Monday's losses against a weakening US dollar, rising $2.10 to $944.30.

Base metals retreated as rising stockpiles and yesterday's 2.3% slide in Chinese shares revived demand worries. In London, copper dropped 1.8%. Aluminum, nickel, tin and zinc prices also fell but lead bucked the trend, advancing on supply concerns after shutdowns in China.

TRADING THEMES TODAY

CHINA: Europe and the US advanced overnight but the local market will keep a close watch on the continuing decline in Chinese equities. Yesterday's 2.6% fall dragged regional markets lower, including Australia, and falls on the Shanghai metals market weighed on our miners. "There's still concern that China might be pulling back on [metals] restocking," said one local trader.

COMPANY REPORTS: Another huge menu. AIX, AEP, APA, AVG, AOE, AIO, AJL, BBI, BEC, BJT, BVA, CEU, CMJ, CNP, CPI, CWN, EHL, ENE, FEA, FLT, GFF, GZL, HSP, IEF, IFL, IMF,IKL, KSC, MAQ, MCC, MIX, MRZ, NMS, NZO, PBG, PGA, PME, PRT, RCY, RDF, REX, SDG, SDM, SEV, SKC, STS, TCL, TOL, TPI, TRG, TSE, WDC, WDS, WTF. (Sources: Egoli, BRR, Dan 68)

Good luck to all.