daytrade diaries... september 2 part 2

Half-time round-up:

Evidence of healthy growth in the local economy couldn't halt a severe sell-off in equities this morning as investors took their cue from overseas.

At lunchtime the ASX 200 was down 89 points or 1.99% at 4424, crushed by heavy selling in energy (-2.7%), industrials (-2.6%), financials (-2.5%) and mining (-2.2%).

News that the economy accelerated last quarter barely caused a blip in the selling. Gross domestic product for the second quarter grew by 0.6%, up from 0.4% in the first quarter and ahead of expectations. "That's a great result," said ICAP economist Adam Carr, quoted on Fairfax. "The domestic picture is looking very good. We're looking at an economy that will be firing on all cylinders in the third quarter."

Asian markets were mostly lower on the negative lead from Wall Street. Japan fell 2.63% and Hong Kong was down 1.66%. China stood out in the sea of red, rising 1.19%. Dow futures were neutral at +4. Crude oil futures rallied 25 cents to $68.51.

Gotta love these sell-offs. Took KZL and MCR from the open because of their strength from those levels yesterday. Also traded ILF and LNG because of recent strength. Caught DOW on the bounce when it "waterfalled". In AIX at 146.5 and looking for an afternoon recovery. Averaged down in PIO at 5.7 - pivoted beautifully off support and I'm back at break-even. Small speculator in BLT.

Potential overnight holds: IEF is into clear air. BUY and MMR are still finding buyers at these levels. Perhaps WTF on retrace. PIO looks putting in a reversal candle today (I hold).