The share market has an eighth day of gains in sight after strong global economic news lifted regional markets this morning.
At lunchtime the ASX 200 was 22 points or 0.5% ahead at 4833 and on track for its ninth weekly gain from ten. Industrials, defensive stocks and financials did the heavy lifting this morning as BHP wavered and Rio Tinto traded little changed. The index's gains came after better-than-expected economic figures from China, Europe and the US overnight.
"Continued flow of positive economic data and the impact that's having in attracting money flows into equity markets is the biggest factor at the moment," Angus Gluskie, managing director of White Funds Management, told Bloomberg. "Investors are increasingly prepared to push valuations up amid prospects for earnings re-ratings."
Asian markets rallied in spite of weakness in US futures after Microsoft missed Q4 sales targets when it reported this morning. Dow futures were lately off 22 points or more than 0.1% after Microsoft shares dropped around 1.5% in after-market trade. Hong Kong's Hang Seng inched up 0.09%, Shanghai 0.03% and Japan's Nikkei jumped 2.14%.
Crude oil futures eased seven cents this morning to US$95.91 a barrel. Spot gold was unchanged at US$1,667 an ounce. The dollar was buying $US1.0453.
Focus is a key skill for day trading. You have to shut out the noise and concentrate on your best money-making ideas each day. Which is the opposite of how I operated this morning. I spotted the Netflix share price surge in the US and thought, "Hmmm... bet that fires up Quickflix here today. I should buy the open." Then I thought, "Damn, that was a nice bottle of wine last night. Wonder what I'll have for lunch today? Hey - there's a cat video!" When I got back to thinking about QFX, it was up 35%. Successful trading is 90% preparation, 10% execution. For instance, years of losing trades in RSG have taught me to buy just under round-number support levels, rather than above. Therefore as soon as RSG began falling today I placed a buy order at 1.39, which was eventually filled. I was confident enough in the trade to buy big, so a one-two pip rise will offer a day's wage. It's not 35% but it's a wage. SIV also offered a decent bounce trade, even though I missed the low by some distance. Now where's that cat video?
