daytrade diaries... june 10

Morning traders.

Market wrap: US stocks drifted sideways for a third session overnight but a spike in commodity prices promises gains on the ASX today.

Wall Street finished mixed as stocks struggled for direction and traded in a tight range. The Dow lost 1 point, the S&P gained 0.35% and the Nasdaq added 0.96% on strength in tech stocks.

Oilers advanced as crude finished above $70 in US trade for the first time in seven months on weakness in the US dollar and after the US Energy Department raised its price forecast for the year. Oil recently traded at 69.95.

Gold rose for the first session in three, adding a couple of dollars to trade at $954.40. Copper led a strong bounce in base metals as stockpiles fell and car sales rose in China. Copper rose 5% in LME trade, aluminium 2.7%, nickel 4.9%, zinc 3.9% and lead 3.7%.

Futures traders expect our market to recover some of yesterday's losses. The SPI rose 23 points to 3967.

Three days of sideways action in the US suggests considerable uncertainty about the market's next move. But a period of consolidation is no bad thing after the stellar gains of the last three months. The resources rally remains intact for now and that's where many of the opportunities lie today after yesterday's sell-off.

Good luck to all.