daytrade diaries... october 28 part 2

Half-time round-up:

The prospect of sharply higher interest rates quashed a nascent bounce in the Australian stock market this morning and sent shares sliding for a third day.

Local share indexes inched into positive territory before the release of CPI figures at 11.30 am raised inflationary fears that point to rapid rate rises. The quarterly consumer price index rose 1% in the third quarter, against analyst expectations of a 0.9% rise.

At lunchtime the ASX 200 was down 40 points or 0.85% at 4713 after selling in the main props for the local markets: the big banks and miners. Financial stocks crashed 1.7% and miners 0.9%. Defensive sectors benefitted from a flight to safer havens - Telstra led the telecoms sector 1.6% higher and health rose 1.1%.

Asian markets were lower. Japan's Nikkei fell 0.73% and Hong Kong's Hang Seng lost 0.74%. Dow futures were mildly positive at +12. The spot gold price edged up to $1040.90. Crude oil futures gained 36 cents to $79.71 a barrel.


Plenty of swing trade opportunities this morning for anyone looking to buy on retrace. Profitable bounces captured in RIV, NWH, CCU, SUN and NMS. Still holding BKN, TLM and API from this morning's lows. Happy to see ABY swing positive this morning - compare with BTA's recent action for the potential rewards in this type of trade.