daytrade diaries... june 2

Morning traders.

Market wrap: US stocks shrugged off GM's long-expected bankruptcy and soared overnight as investors focused on solid economic data at home and out of China.

The S&P 500 set a new high for 2009 as the market greeted the carmaker's entry into bankruptcy protection as a chance to move on from one of the darkest chapters in US business history. The Dow and S&P both gained 2.6% after better-than-expected data on US personal income, manufacturing and construction and more evidence yesterday that Chinese manufacturing is recovering.

Oilers continued to advance as the US dollar weakened and crude rose for a sixth day. Crude ended the US session up 3.4% at $68.58, its highest close since early November. Banks made little headway but there were gains for gas companies (+5%), REITs (4%) and transport (4%).

Gold miners lost ground after the price of gold pulled back from yesterday's four-month high, recently trading at $974.60. Copper smashed through the old resistance level to hit a seven-month high. Nickel also hit its highest level since October in a strong rally in base metals on the back of the US and Chinese manufacturing data.

If futures traders are right, our market will open within striking distance of a new high for the year. The SPI added 48 points to 3936.

A big day ahead. Two possible scenarios: one, our market pre-empted the US move yesterday and is set for a pull-back after a strong open; or two, the overnight action is so bullish it will drive our market up all day. Damned if I know which will play out, but there's money to be made. These are good days to be trading.

Good luck to all.