daytrade diaries... monday

Morning traders.

Market wrap: Australian traders are looking at a positive start to the week after Wall Street wrapped up its strongest week since March with a surge on Friday. The major US indexes finished 1.3 - 2.4% higher on Friday for an eighth week of gains in the last nine on hopes that slowing job losses indicate a looming turnaround in the economy.

Banks led the market higher despite question marks over the rigour of government stress testing. The S&P Bank Index rose more than 12%. REITs, oilers and gold miners also saw solid gains.

Crude put on nearly 3.5% to a new six-month high at $58.63. There was little change in gold, which sits at the top of its recent trading range at $916. Base metals held on to recent advances but were unable to advance significantly.

Futures traders expect the local market to open stronger today. The SPI added 44 points to 3969.

Oilers are an obvious target this morning with the rally in crude showing no signs of fatigue. Other prospects to consider are stocks that will benefit/suffer from tomorrow's federal budget, but I haven't done the homework.

I'm looking for gains in a couple of swing trades from late last week. MTS put in what looks like a perfect reversal candle on Friday and BBG finished the week with a tweezer bottom.

Here's to a prosperous trading day for all.