Daytrading December 19 afternoon

Thanks Oscar and morning crew.


Half-time round-up:

The Santa rally resumed this morning as traders paid more heed to hopeful US equity futures than declines in Asia and news of a federal budget blowout.

At 1pm EST the ASX 200 was 38 points or 0.7% ahead at 5571, within spitting distance of last Wednesday's 16-month closing high of 5585. Market sentiment was helped by promising signals from the US, where S&P futures were recently up 3.5 points or points or 0.16% and crude oil futures up 49 cents or 0.94% to US$52.39 a barrel after China announced it will return a US underwater drone picked up in the South China Sea on Friday.

"News that China will return the captured US drone may restore a little confidence this morning. However, the fact remains that this incident is a reminder to markets that geopolitical tensions may deserve more risk premium under the Trump administration," Ric Spooner, chief market analyst at CMC Markets,told CNBC.

The industrial sector led the rally with a rise of 1.4%. Also strong: utilities +1.3%, telecoms +1% and energy +0.8%.

Government observers were on credit watch after Treasurer Scott Morrison announced the federal budget will deteriorate by $10.4 billion over the next four years, despite an improvement of $600 million this year. Morrison maintained the budget will return to surplus by 2020-21.

A downbeat morning in Asia saw China's Shanghai Composite slide 0.38%, Hong Kong's Hang Seng 0.75% and Japan's Nikkei 0.45%.

Gold futures ticked up $3.70 or 0.33% to US$1,1401.10 an ounce. The dollar was buying 73.13 US cents.


Early days, but a hint that Wall Street may resume its upward push tonight. Friday's weakness was largely attributed to news of the Chinese power play in the South China Sea. The 20,000 level seems to be acting like a magnet for the Dow - be surprised if it doesn't get there. Trading: I'm still smarting from an end-of-week punch in the face from PRU on Friday. Watched it today but will wait until it's nearer obvious support before reconsidering. As for today, picked up potential rebound candidates in MNS, RMX, RFT and S2R, but so far they're all promise, no follow-through. Volumes seem sub-par already.