daytrade diaries.. thursday

Morning traders.

Market wrap: US stocks thudded lower overnight after fresh evidence that the recent stock market rally has outpaced economic reality. The major indexes lost 2.2% - 3% as declining retail sales figures suggested a rebound in the economy is further off than many hope.

Few sectors survived the rout. Banks fell more than 5%, REITs nearly 7%, gold/silver miners 2.5% and oilers at least 3%. Pharmaceuticals scraped out a 0.5% rise after a positive profit report from Pfizer.

Oil topped $60 early in the session but fell away heavily on evidence of weak US demand, ending 1.5% lower at $58. The disappointing US retail sales took a toll on base metals, with copper leading declines. Gold continued to tread water at $926, the same level as yesterday afternoon.

Futures traders predict a tin-hat day on the local market. The SPI is down 97 points at 3743.

Well, it looks like the long-awaited correction to the recent rally is well and truly underway. No bad thing IMO, as this rally ran too far too fast and a breather now will create the conditions for further advances in a week or two.

In the meantime, I'll look for quick trades in oversold stocks this morning once the dust has settled. It's a day to be nimble, very selective and none too greedy.

Good luck to all.