daytrade diaries... october 6, page-25

Good morning,

US Stocks rallied Monday, with the Dow, S&P 500 and Nasdaq all gaining at least 1%, as investors used a two-week selloff as an opportunity to jump back into the market.

The Dow Jones industrial average (INDU) rose 112 points, or 1.2%. The S&P 500 (SPX) index gained 15 points, or 1.5% and the Nasdaq composite (COMP) rose 20 points, or 1%.

Some analysts are saying "I think the underlying trend of the market is still positive, despite the last two weeks. You're seeing that start to reassert itself today."

Oil prices pushed through early losses to settle above $US70 a barrel on Monday on the coat tails of strong equity markets and weakness in the US dollar.

Benchmark crude for November delivery gained 46 cents to settle at $US70.41 on the New York Mercantile Exchange.
LONDON - European share prices edged higher in hesitant trading on Monday, in line with a positive opening on Wall Street and better than expected data from the United States on the services sector.

In London the FTSE 100 index of leading shares closed 35.63 points, or 0.71 per cent higher at 5024.33 points.

FRANKFURT - The DAX added 40.95 points, or 0.75 per cent, to 5508.85.

PARIS - The CAC 40 index closed up 25.11 points, or 0.69 per cent, at 3675.01.

The Australian share market is expected to open stronger led by higher US and European stocks and rises in commodity prices.

At 0641 AEDT on the Sydney Futures Exchange, the December share price index contract was 47 points higher at 4630.

In economic news, the board of the Reserve bank of Australia holds its monthly meeting to consider, inter alia, its position on official interest rates. It announces its decision at 1430 AEDT.

The Australian Chamber of Commerce and Industry survey of investor confidence is due.

The Federal Chamber of Automotive Industries new vehicle sales data for September and the Australian Bureau of Statistics international trade data for August also are due.

Gold up $13.50 to US$1017.80 an ounce
Silver up 30.5c to US$16.535 an ounce
Copper up 4.55c at US$2.727 a pound

http://www.marketwatch.com/
http://www.thebull.com.au/
http://www.news.com.au/business/

Using poor stock selection criteria. Beginning investors don't know what to look for when purchasing a stock and often end up buying shares in lacklustre companies.