The ASX 200 baulked at the 6000 level for the fourth time following weak overnight leads and a tepid reaction to this morning's earnings update from global giant Apple.
At lunchtime the benchmark index was 18 points or 0.3% weaker at 5964 as gains in the gold sector +3.5%, consumer staples +0.4% and metals & mining +0.3% were outweighed by falls in health -1.8%, telecoms -0.4%, utilities -0.3% and financials -0.3%.
"This is hardly surprising given the soft leads and recent strong run up for the market, with the 6000 level once again proving the stumbling block for the bulls" Chris Conway, Head of Research at Australian Stock Report, told Fairfax. "Even the big miners, BHP, Rio and Fortescue aren't pressing higher despite iron ore prices adding another 2.2 per cent overnight. This is clear evidence that traders and investors remain cautious and unwilling to bid the market up too far without further catalysts."
US equity futures traded lower despite a positive reaction in after-market trade to Apple's latest earnings report, delivered after the end of regular trade in the US this morning. Shares in Apple were lately up 1.33%. Dow futures were off 11 points or less than 0.1%, S&P 500 futures 0.11% and Nasdaq futures 0.02%.
China's Shanghai Composite rallied 0.72%, Hong Kong's Hang Seng lost 0.09% and Japan's Nikkei added 0.49%.
Crude oil futures dived 78 cents this morning to US$56.21 a barrel. Spot gold was $1.80 weaker at US$1,201.40 an ounce. The dollar was buying 78.72 US cents.
Geez, there were some good trades on offer this morning. Missed AZK and EMH entirely but still had a good morning. As Shants suggested, I was all over ASH. The iceberg sell orders were the give-away. The instos place them to spook sellers, then accumulate below, so I began buying when the first order appeared. Increased the position when a second iceberg appeared - note that down as a confirmation signal. HSN was another easy trade - gave a strong clue yesterday that it was bounce-tradeable. The instos worked the same trick with WHC as yesterday but I bungled the opening auction so badly that I ended up with 328 shares. More recently took TNE under $4.
