daytrading may 15 afternoon

Thanks Endless.

Half-time round-up:

Australian shares suffered their worst morning in almost a month as traders found more negatives than positives in the Federal Budget, the dollar fell back and UGL warned of a slowdown in mining investment.

At lunchtime the ASX 200 was 40 points or 0.8% in the red at 5181 led by declines in the big miners and industrials. Hardest hit were the metals & mining sector -2.6%, materials -2.2% and industrials -2% after mining contractor UGL issued a profit downgrade, citing a drop-off in mining activity. Consumer stocks also lost ground as traders reacted to last night's Federal Budget. Utilities +0.6% and health +0.1% were the only sectors to advance.

"I think [the market decline is] because they're absorbing the budget and getting down to the fine detail of those policy statements and spending," RBS Morgans Ipswich manager Tony Russell told Fairfax. "There's also ongoing concern with what's happening in China at the moment and with the Australian dollar."

The mood was brighter in Asia, where Japan's benchmark share index hit a new five-and-a-half-year high. The Nikkei surged 2.29%, Shanghai edged up 0.13% and Hong Kong's Hang Seng put on 0.52%. Dow futures were recently off four points or less than 0.1%.

Crude oil futures rallied 13 cents this morning to US$94.34 a barrel. Spot gold was $1.90 stronger at US$1,426.40 an ounce. The dollar was buying 98.9 US cents.


Nothing negative happening overseas to drive this sell-off so far as I can see. Currency issues may be at play, with international funds with a negative view on the dollar perhaps selling down share holdings. UGL set the cat among the pigeons and SDM exacerbated the situation with its own profit warning. Caused carnage among construction/engineering shares. The retailers have been sold down steadily, I would guess on the basis that the budget has left many with less spending money. I stuck to trading "oversolds" with mixed success - profitable scalps in DJS, DOW, WCL and MBN, but most of that will be undone if MND doesn't improve. Made a pig's ear of that trade and failed to sell into the bounce. No point having a plan if you don't execute. Should hand in my day trader's licence.