daytrading sep 25 afternoon

Thanks Endless.

Half-time round-up:

Australian shares rebounded this morning, recouping the week's losses as a broad rally lifted all sectors.

At lunchtime the ASX 200 was 46 points or 0.9% higher at 5280, roughly four points above Friday's closing level. Gold stocks led the up-swing, rising 1.9%. Other significant gains included consumer staples +1.2%, energy +1.1%, financials +0.8%, materials +0.7% and the Small Ordinaries +0.7%.

The gains followed a mixed session in Asia and a flat morning for US futures. Shanghai rallied 0.08%, Hong Kong's Hang Seng put on 0.28% and Japan's Nikkei fell 0.39%. Dow futures were recently up two points or less than 0.1%.

"Sentiment remained somewhat subdued as investors stayed cautious amid lingering uncertainty on the Fed's stance," analysts at Credit Agricole wrote in a note quoted on Reuters. "Adding to that uncertainty at the approaching deadlines for the US fiscal struggle and we expect the market to place increasing focus on that front going forward."

The Reserve Bank this morning cautioned lenders to keep a tight rein on loans amid evidence that borrowers are taking on more risk with interest rates at record lows.

"There are some signs that households are taking on more risk in their investment decisions," the RBA's semi-annual financial stability review said. The central bank said banks should "not respond to pressures to boost revenue by imprudently loosening their lending standards, or by making ill-considered moves into new markets or products."

Crude oil futures eased three cents this morning to US$103.25 a barrel. Spot gold bounced $1.10 to US$1,324.40 an ounce. The dollar was buying 93.87 US cents.


A bullish morning but I'm struggling to find any substantial reason for the strength of the rally. The ASX is out on a limb here. Any Asian market gains are modest, US futures subdued and oil, gold and the dollar little changed. I would be wary about holding much overnight because we're front-running here and could get bitten if Wall Street continues its slide tonight. Missed a few trades this morning. Should have had the courage of my fib convictions when LCT hit the low 7s yesterday. Also should have held on to AHZ. Just one new trade today: been waiting for ANN to reach the $20 level. Bounced nicely.