Daytrading October 17 afternoon

Thanks Oscar and morning crew.


Half-time round-up:

Resource stocks and casino operators dragged the ASX lower this morning as a strengthening US dollar pressured commodities and US equity futures, and China cracked down on gambling.  

At 1pm EST the ASX 200 was 20 points or 0.4% weaker at 5412 and threatening a fourth straight loss. The consumer discretionary sector skidded 1.8% after Chinese authorities arrested 18 employees of Crown Resorts on suspicion of 'gambling crimes'. Shares in CWN were lately off 10%, SGR 5.2% and SKC 3.9%.

Resource stocks eased as crude oil and gold retreated as the US dollar rallied. The energy sector declined 1.25%, gold 1.1% and metals & mining 0.5%. Crude oil futures slipped 26 cents or 0.52% this morning to US$50.09 a barrel. Gold futures were $1.10 or 0.09% lower at US$1,254.40 an ounce.

Today's declines followed a flat close on Wall Street on Friday as a new quarterly corporate reporting season cranked into gear amid muted expectations. Dow futures were recently off 61 points or 0.34%.

“Caution will prove constructive for the period ahead,” Matthew Sherwood, head of investment strategy at Perpetual, told Bloomberg. "The key macro variables for the current [US profit] season are set to be higher oil and the dollar. The key will be the outlook statements and whether corporate leaders see some light at the end of a very dark and extended tunnel.”

The mood deteriorated in Asia, where China's Shanghai Composite was last down 0.02%, Hong Kong's Hang Seng 0.75% and Japan's Nikkei 0.11%.

The dollar was buying 75.89 US cents.


Volatility seems to be on the rise - a plus for traders, a test for buy and hold investors. As mentioned, some indicators point to a decent sell-off in the US some time in the future, but the timing is unclear. Reporting seasons tend to be market-supportive, so the next two-three weeks seems unlikely unless the figures are wretched - first reports suggest not. Then there's the election in November - also unlikely? So December? Trading: ripper of a start to the week. KCN was one of those trades with so much spread that I could afford to miss the bottom and the peak and still make a very good swag. Traded KDR three times and BGS for less than hoped. If only every day offered as much opportunity.