daytrade diaries... wednesday

Morning traders.

Market wrap: US stocks clawed back some of Monday's heavy losses as fears about the health of the American banking sector receded overnight. Upbeat comments from Treasury Secretary Timothy Geithner and Citigroup's CEO helped bank stocks bounce nearly 11% and the major stock indexes gain 1.6 - 2.2%.

REITs were strong, climbing more than 9%. Airlines and insurance companies also made significant gains.

Crude oil reversed early losses to match the stock market rally. The May contract, which expired overnight, gained 1.5% to finish at $46.50 after bouncing off a low of $43.83. Gold slipped less than 0.5% to $882.70. Base metals were mixed but most pared early losses to finish up or close to flat.

Futures traders expect our market to open around 1% higher than yesterday's close. The SPI gained 34 points to 3705.

Yesterday's big fall brought a few stocks back towards the Buy zone for swing traders. I'll look at the REITs this morning, plus check for reversal signals in some of the resource rockets that began to fall back to earth this week. Holding AAX and looking for confirmation of a reversal after yesterday's recovery. There was healthy interest in the closing auction last night, which is often a good sign.

Good luck to all.