daytrade diaries... august 31 part 2

Half-time round-up:

Heavy losses in China unsettled regional markets this morning and helped wipe out early gains on the ASX.

At lunchtime the ASX 200 was down 9 points or 0.2% at 4480 and well off its morning high of 4537. Financial stocks advanced 1.2% after ANZ's profit report but the mining sector was in the red after market giant BHP went ex-dividend. Also ahead: IT +2.1%, gold miners +1.9% and property trusts +0.7%.

The Shanghai Stock Exchange was recently down 5.26% and falling hard on fears of weak bank lending and concerns about potential capital raisings. The losses dragged Hong Kong down 2.28% and Japan 0.35%. Dow futures were also negative at -43.

Gold futures briefly broke through $960 and are currently at $956.10. Crude oil futures are at $72.52 and falling.

Potential overnight holds: US futures and the big fall in China strongly suggest caution. But for the brave, BLT and QMN look good. PPX broke out after reporting this morning. BBI is worth adding to the watchlist for possible reversal.