Daytrading August 20 afternoon

Thanks Brit and morning regulars.


Half-time round-up:

The share market slumped to a seven-month low this morning after market heavyweight BHP's US listing hit a seven-year nadir overnight as weakening commodity prices crunched resource stocks.

At lunchtime the ASX 200 was down 78 points or 1.45% at 5302 after touching its weakest level since January 20. Energy stocks suffered the biggest slide, shedding 5.4% after crude oil touched its lowest level since 2009 overnight and sector heavyweight ORG reported a full-year loss.

The metals & mining sector dropped 1.8% as BHP touched its weakest price since January. The company's US listing last night crumbled to a level last seen in 2008 during the recovery from the GFC. Gold +5% was the only sector to improve after the US Federal Reserve hinted overnight that it may not raise rates at next month's meeting.

“The Fed is lacking decisive reasons to raise rates,” Mitsushige Akino, executive officer at Ichiyoshi Asset Management in Japan, told Bloomberg. “Concerns about the global economy are a burden, and cheaper oil increases concerns about global growth.”

Asian markets remained turbulent. China's Shanghai Composite was lately down 1.08%, Hong Kong's Hang Seng 1.44% and Japan's Nikkei 0.61%. Dow futures were recently ahead by seven points or less than 0.1%.

Spot gold rallied another $7.10 this morning to US$1,135 an ounce. Crude oil futures slid 31 cents to US$40.49 a barrel. The dollar was buying 73.52 US cents.


Gold has built up an impressive head of steam since last night's settlement. Looks like plenty are willing to bet the Fed will sit on its hands until at least December. Trading: I got thoroughly pantsed on AWD late yesterday and needed a good session today to make up for it. Fortunately LNG delivered one of its trademark dives and partial recoveries to claw some back. Also been watching Goblin's CZZ for an entry and got it in the mid 16s this morning. Noice.