Daytrading January 22 afternoon

Thanks Brit and morning crew.


Half-time round-up:

The share market is on track for back-to-back gains for the first time this year as beaten-up resource stocks rebound from multi-year lows on global stimulus talk.

At 1pm EST the ASX 200 was trading 51 points or 1% ahead at 4915, led by strong gains in metals & mining +5.2%, energy +3.9% and materials +3.4%. All three sectors fell to their lowest level in at least a decade earlier this week. Other pockets of strength included consumer staples +2%, consumer discretionary +1.2% and financials +0.5%. The gold sector bucked the trend, falling 1.5%.

The mood on world markets improved overnight amid reports that central bankers in Europe and Japan are considering further measures to counter an economic slowdown in China.

“The cavalry might be coming to the rescue in terms of the central banks starting to sound more dovish,” Shane Oliver, head of investment strategy at AMP Capital Investors, told Bloomberg. “There’s a little bit of light at the end of the tunnel. We’ve probably seen the worst and by the end of the year things will be a lot brighter than they are now.”

Japan's Nikkei surged 3.02% following a report that the Bank of Japan is considering further easing to counter the hit to inflation from falling energy prices. China's Shanghai Composite put on 0.34% and Hong Kong's Hang Seng 2.1%. Dow futures were recently up 17 points or 0.1%.

Crude oil futures rose 20 cents this morning to US$29.73 a barrel. Spot gold was $1.50 firmer at US$1,099.70 an ounce. The dollar was buying 69.96 US cents.


The shorts are taking money off the table this morning. Well done if you picked the bounces in the likes of BHP, STO, S32, FMG, etc. Will the rebound be more than a one-day wonder? Too early to say, but world markets have fallen far enough for the central bankers to consult their play-books. Trading: good to see a few making some coin this morning. I'm on the rack with IPL. Highly unusual to see a large cap fall 10% without a trading halt or a 'please explain'. Initial entry was too high. Looks a little better now but need a few more pips to avoid a cost trade. Swung and missed at quite a few more, including MCT and WPI. Watching EPD for capitulation.