morning guys,certainly some very encouraging economic news out...

morning guys,

certainly some very encouraging economic news out overnight with the US pending home sales and construction spending both unexpectingly strong on top of the Chinese manufacturing that was at its highest level in 9 months.

expect to see plenty of strength today in the resource sector on the back of the economic data also copper and zinc were both limit up in late chinese trade yesterday so expect to see further strength in the base metal plays.

with zinc plays PEM,CBH and KZL all up over 30% yesterday, look for some rotation in the sector with the likes of JML,BTR,TZN worth looking at because they underperformed.

In particular I like JML who are a debt free copper/zinc producer on track to produce 31,500 tonnes of zinc and 10,500 tonnes copper and is among the lowest cost australian producers, and has some catching up to do after yesterday's rally. Closing at previous resistance of 30c it is at a critical point, if it presses forward today it could cause a surge in technical buyers jumping in the breakout above 30c.

Some of the smaller oil explorers might get a kick along today on the back of a rising oil price, which closed at it's 2009 highs overnight. Keep and eye out for unusual volume for trading opportunities.

Still scratching my head about trading in GDN yesterday, after releasing a very positive announcement in regards a possible commercial gas discovery the shareprice did absolutely nothing. It is another one that has a habbit of surging quickly without warning, so keep an eye on volume.


as always DYOR!!!