Thanks Oscar and morning regulars. Half-time round-up: A second...

Thanks Oscar and morning regulars.


Half-time round-up:

A second day of strong gains pushed the ASX 200 towards the 5200 level as an overnight commodities rally overshadowed soft US equity futures and a mild pullback in Shanghai.

At 1pm EST the benchmark index was trading 64 points or 1.3% higher at 5163 after earlier running as high as 5194. Resource stocks led the rally following overnight gains in gold, oil and base metals. The gold sector jumped 3.5%, energy 2.8%, metals & mining 2.2% and materials 1.8%. The finance sector put on 1.3%.

"Strong commodity prices and positive currency moves suggest significant additions to yesterday's rises," CMC chief market strategist Michael McCarthy told Fairfax. "The week so far is dominated by index trading – this may change today as the switch from the September to December futures contract is complete. Energy and finance stock are likely to lead again."

Dow futures were lately down 32 points or 0.2% ahead of tonight's Federal Reserve interest rate decision. China's Shanghai Composite was off 0.25%. Hong Kong's Hang Seng gained 0.41% and Japan's Nikkei 0.83%.

Crude oil futures pulled back 15 cents this morning to US$47 a barrel. Spot gold was $2.10 stronger at US$1,121.10 an ounce. The dollar was buying 72.01 US cents.


You could have done pretty well range trading the XJO between 5000 and 5200 over the last few weeks. However, the range has been tightening week by week - something is going to give, in one direction or the other. We'll have a better idea which way this time tomorrow. Trading: my trading account has been fighting back since yesterday's lunchtime post. Scored a couple of arvo wins in UML and MOZ yesterday and traded the first bounce in NXR this morning. Didn't cash in on subsequent opps as well as Mitta - well done, mate. Tentative half-position in VED to see if it can kick off support. Still on oven chips for dinner, but might afford some ketchup tonight.