Daytraders 7 July Afternoon

Welcome to the lunchtime wrap!
thanks to Speckle and all positive contributors!



10:31am: Well, so much for the cautious open: local shares are rallying hard, with gains across most sectors including miners.
The ASX200 is up 1.6 per cent at 5562.9, while the broader All Ords has gained 1.55 per cent to 5547.8.
The big banks are leading the rebound, with Westpac jumping 2.1 per cent, CBA up 1.4 per cent, ANZ rising 1.5 per cent and NAB gaining 1.8 per cent,
Most other blue chips are also in the black, including the two big miners BHP and Rio - up 0.9 per cent and 2.1 per cent respectively.
Even Fortescue is rallying, adding 2.3 per cent, despite another slide in the iron ore price overnight.
Energy stocks rank high among the few losers - just 19 out of the top 200 shares are in the red - with Origin falling 1.8 per cent, Santos down 2.6 per cent and Woodside losing 0.7 per cent.


Following on from that last post, Greece might be the word but China is what Australian investors should be watching and listening to this week, says Elizabeth Knight:
China is a much more confronting situation for Australian and  world equity markets. Europe is someone else's problem, China is our problem.
The European game of chicken being played out between the Germans and the Greeks will ultimately resolve itself.
Greece is a tiny economy with virtually no financial ties to Australia and of limited economic importance to the rest of the world – even Europe. Thus the contagion to other European countries is a possibility but not a probability.
But the contagion effects of a crash in the Chinese stock market to the Chinese economy, Australia and the rest of the world is much more real.
Clearly, the Chinese government believes so, which is why it went to such enormous lengths at the weekend to prop up the equities market.
The trouble is, despite using its well stocked  toolbox, the Chinese government may not necessarily succeed in stabilising its equity market.
Even after falls of 25 per cent in the past couple of weeks, the Shanghai exchange is still boasting a one-year return of more than 86 per cent.
And the money that has been poured into Chinese listed companies is coming primarily from local retail investors that have been treating the equities market like a casino.

Quote from K. Fisher ,Fisher Investments California,sums it up,

"China frequently confounds stock market prognosticators because it has a penchant for straying markedly from other broad global indexes year-by-year over the decades - even from emerging markets. It's hit or miss."

Kenneth Fisher

Do Your Best!!