daytrade diaries... january 19 part 2

Half-time round-up:

The Australian share market gave back three days of steady gains this morning as the CBA-inspired rally in financial stocks began to unwind.

At lunchtime the ASX 200 was down 33 points or 0.7% at 4877 on weakness in the industrial sector (-1.4%), property trusts (-1.3%), financials (-1%) and energy (-1%). The only sectors to trade positive were IT +6% and gold +0.6%.

Market commentators blamed profit-taking after a nervy start to the US fourth-quarter earnings season. "The market looks to have caved in over the last hour, and its really the financials sector that is dragging down the broader market," CMC Markets senior dealer Matt Lewis told Fairfax.
"Although JPMorgan had a relatively good profit, their retail division was fairly weak and that may translate into a bit of nervousness for our retail banks. I dont think its really warranted."

Asian markets were mixed. Japan's Nikkei was off 0.09%, Shanghai was up 0.86% and Hong Kong's Hang Seng up 0.1%. Dow futures were a mildly bullish +31.

Gold rallied strongly this morning. The spot price was recently up $8.80 at $1,138.80 an ounce. Crude oil futures were 20 cents higher at $78.45 a barrel.


An ugly morning and tricky to trade. Two nice bounce scalps closed in IMF and one in MHM. Mildly underwater or break-even in CAB, GWT and SHL - looking for bounces from here.