Daytrading June 28 afternoon

Thanks Oscar and morning crew.


Half-time round-up:

Shares tilted towards a ten-week closing low after yesterday's post-Brexit bounce proved fleeting following further heavy selling overnight in Europe and the US.

At 1pm EST the ASX 200 was 62 points or 1.2% weaker at 5072 after surviving an early test of yesterday's low at 5051. The index briefly regained 5100 on strength in US equity futures and a recovery in Asia before fading once again.

The energy sector led the way south, falling 3.5% as the recent recovery in crude oil continued to unwind. WTI crude oil futures were lately down another 65 cents or 1.4% at US$46.98 a barrel. Also weak were IT -2.1%, consumer discretionary -1.8%, industrials -1.6% and the Small Ords -1.5%. The only sectors to resist the trend were defensives: telecoms +0.3% and gold +0.4%.

The retreat followed another brutal session in the northern hemisphere. The S&P 500 fell 1.81%, the Nasdaq 2.41% and Europe's Stoxx 600 4.11%.

"UK and European banks are getting destroyed, having the worst two-day move ever," Chris Weston, chief market strategist at IG, told CNBC. "The UK referendum has not just left a stain on British politics (and society), but it has unmasked a number of macro concerns that were largely smoothed over in the wake of the coordinated central action in February."

Asian markets pared losses amid speculation about stimulus measures in Japan and South Korea. China's Shanghai Composite was last off 0.36%, Hong Kong's Hang Seng 0.97% and Japan's Nikkei 0.33%. Dow futures were recently ahead 105 points or 0.62%.

Gold futures were $1.50 or 0.1% weaker at US$1,323.20 an ounce. The dollar was buying 73.8 US cents.


Yesterday's ASX rally looked foolhardy at the time, with US futures in the doghouse, and was quickly exposed as folly. US futures look chipper right now, but the XJO can't afford to be wrongfooted twice in a row, so a soft finish seems likely. Trading: a simple ploy in these situations is to look at what bounced on Friday/yesterday and buy on weakness. Worked a charm with TAH. Also took IAG, which offered a sell opp but I got greedy. Bought CYB on the Day 3 rule and was rewarded with a nice bounce.