daytrade diaries... october 7 part 2

Half-time round-up:

Stocks surged higher this morning on huge gains in the resources and gold sectors.

At lunchtime the ASX 200 was up 71 points or 1.56% at 4663 after gold shares rocketed 5.3%. The mining sector stacked on 3.2%, materials were +3%, property trusts +1.8% and financials +1.7%. Defensive sectors such as consumer staples and health were flat, suggesting a renewed appetite for risk.

The Australian dollar hit its highest level in nearly 14 months overnight, and in domestic trade this morning was at US89c.

In economic news, Australian home loans fell 0.6%, seasonally adjusted, slightly weaker than the 0.5% drop tipped by analysts. However, investment lending increased by 7.6%, suggesting investors are returning to real estate.

Asian markets moved higher. Japan's Nikkei added 0.99% and Singapore put on 1.08%. Dow futures were at -1. The spot gold price drifted around $4 lower to $1038.40.

Been a good morning here but a little patience would have made it a cracker. Grabbed GXY and UNI on post-capital raising sell-downs - these have been good trading opportunities lately. Sold both too soon. Scalped DDT and BXB off their lows. Exited NEU at break-even - too thinly traded at present.

Potential overnight holds: Pick a goldie - any goldie. In addition, a few beaten-up stocks seem to be reversing today - IPL, FMG, KZL, SRL. Tight stops.