daytrading jan 16 afternoon

Thanks Endless.

Half-time round-up:

Shares are on track for a second day of gains despite a dive in the dollar after jobs data missed expectations.

At lunchtime the ASX 200 was trading 42 points or 0.8% higher at 5287 with all sectors recording rises. Resource stocks led the rally, driving gold stocks up 3.7%, metals & mining 2.2%, materials 2.1% and energy 1.7%.

The market overcame a wobble after the 11.30am EST release of soft employment figures drove the dollar to a three-and-a-half-year low. The economy lost 22,600 jobs last month as a 9,000 increase in part-time positions was swamped by the loss of 31,600 full-time roles. The unemployment rate held steady at 5.8%, as expected. The news pushed the dollar down to 88.16 US cents, a level last seen in August 2010. Read more here.

"Disappointing jobs growth reflects how businesses have been slow to respond to RBA rate cuts," Moody's Analytics associate economist Katrina Ell told Fairfax. "The unemployment rate doesn't adequately capture weakness in the labour market due to outsized growth in part-time positions and falling participation. Unless the Australian dollar falls further the RBA will be forced off the sidelines."

Asian markets were mixed. China's Shanghai Composite fell 0.29%, Hong Kong's Hang Seng rose 0.25% and Japan's Nikkei gained 0.35%. Dow futures were recently up five points or less than 0.1%.

Crude oil futures eased 18 cents this morning to US$94.23 a barrel. Spot gold was $1.20 weaker at US$1,238.70 an ounce.



Ouch on the jobs numbers. Market isn't fussed - betting on another cut to the cash rate? Spec end seems livelier this morning after being a bit subdued since Christmas. I took the pullbacks in MKB and VXL. The latter is in the fib zone and needs to bounce around this area.