daytrades - july 8 afternoon

Err, un-acustomed as I am to public speaking ... I would just like to say .....

Been a good morning here with OBL running after a long trade from low 4s and my LT portfolio getting a boost. Still staying on the bid for some cheap buys as this volatility will be around for a while. People are complaining about market conditions but this is what we want. Booming markets mean you are buying high and that's not the way to go.

Being forced into the role of a participant rather than an observer makes me appreciate the efforts of Highland Lad, PJ and Tweets more than ever. They provide the structure that allows the rest of us to have an easy time flitting in and out of the DT thread. But I won't be taking it for granted any longer. This thread could wither away if we don't look after it and I certainly don't want to go back to the bad old days of hunting around on my own looking for stocks. Much better to have a few hundred helpers.

I guess that means I better keep doing the afternoon open until HLL comes back, unless someone else is keen.

I won't name names in case I forget anyone, but a big thanks from me and all the DT thread for the contributions from all the top chartists and traders who post here. :>

Extract from the Eureka report:
�
1. Follow the consumer
The global population is about 6.9 billion, of which about 6 billion live in emerging economies. As such, it only takes around 15% of this universe to match the population of the developed world. If, each year, 1% of this universe improves its earnings to the point that some consumption is discretionary, it will deliver about 60 million new consumers into the global economy. This is equivalent to adding a �US economy� of customers to the global marketplace every five years. The �OECD consumer� may be in decline but the �emerging market� consumer has barely arrived.


MIDDAY REPORT
Courtesy of Commsec

The Australian share market is finally posting some healthy gains so far in trade after a few weeks of losses. The S&P/ASX 200 index is up 1.80 pct or 78.40 pts to 4333.00 with both the banks and miners gaining strongly.

With strong gains coming through from the US and European markets overnight and better than expected employment figures out this morning, both the sharemarket and Australian dollar are receiving a much needed boost.

The miners were single handedly keeping losses to a minimum on the local market yesterday, however today all sectors are well in the black. Australia�s largest banks are doing particularly well with ANZ Banking Group (ANZ) up 4.15 pct or 88 cents to $22.11, and all the other major banks up around 3 pct.

Our materials sector is rising in line with the market with the S&P 200 Materials sector up 2.01 pct or 227.7 pts to 11537. Australia�s 2nd largest miner, RIO Tinto (RIO) is up 2.19 pct or $1.44 to $67.29 and the larger BHP Billiton (BHP) is up 1.92 pct or 72 cents to $38.15.

The retailers are also gaining with Australia�s largest specialty retailer, Harvey Norman (HVN) up 4.06 pct or 14 cents to $3.59 after announcing they have finalised the asset purchase from Clive Peeters.

Developer Lend Lease Group (LLC) is also performing quite strongly after stating the company has made an agreement worth $2.7 billion with the London Borough of Southwark for the urban renewal of Elephant and Castle. The Elephant and Castle is a major road intersection in Southern London and is also used as a name for the surrounding area. LLC shares are up 2.47 pct or 18 cents to $7.48.

On the economic front, employment numbers exceeded expectations in June with 45,900 jobs added and the unemployment rate dropping to 5.1 pct. The participation rate also rose from 65.1 pct to 65.2 pct. Expectations were for around 20,000 jobs to be added and for the unemployment rate to remain at 5.2pct.

Commsec�s Chief Economist, Craig James said that �Some investors get a little spooked by strong job reports, believing that it immediately translates to higher interest rates. But a strong job market is always something to be celebrated not commiserated. Provided the unemployment rate falls slowly and gradually over time it is not a situation to be feared. And that is what is happening. Only when the job market is tightening rapidly and employers don�t have time to react is the situation something to be feared in terms of higher wage pressures, higher inflation and therefore the potential for higher interest rates.�

The Australian dollar (AUD) also benefited almost immediately after the announcement was made and currently buys US87.30c.

Steven Daghlian
Market Analyst