daytrade diaries... may 25

Good Morning All,

The Australian share market as a whole is likely to start the week little changed, as resource stocks rise on gains
in commodity prices while financial stocks decline after their US counterparts slumped on Friday.

The rise in commodity prices and a US dollar slump, prompted by worries about the growing US debt burden, are likely to help the Australian dollar while government bond tenders may put pressure on the local fixed interest market.

In the US on Friday, commodities including oil, gold and copper gained. Financial stocks were generally weaker after federal regulators made their biggest bank seizure in the year to date. Credit card issuers mainly fell as President Barack Obama prepared to sign into law new rules for the credit card industry.

US stocks won't trade on Monday for the Memorial Day holiday, another factor likely to keep local trading subdued.

The U.S. dollar dropped to its lowest level this year on Friday, and was on track for its biggest weekly fall in two months, on growing concerns about the AAA-rating status of the United States.

Energy is expected to move as China continues to stockpile and buy all the commodities they can. I think you have that play of a weaker dollar and stronger commodities right now.

All the best for the week. cav


The first 90 percent of the task takes 90 percent of the time, the last 10 percent takes the other 90 percent.