Daytrading Feb 10 afternoon

  1. 8,456 Posts.
    Thanks Beany and morning regulars.

    Half-time round-up:

    Shares retreated for a second day as the threat of a "Grexit" soured the mood on global markets and Chinese inflation data missed expectations.

    At lunchtime the ASX 200 was 25 points or more than 0.4% lower at 5790 as local investors responded to a risk-averse session overseas after Greece moved closer to a forced exit from the euro-zone. Gains in gold stocks +1.2%, consumer discretionary +1% and metals & mining +0.3% were outweighed by falls in energy -1.1%, consumer staples -0.9%, utilities -0.7% and financials -0.6%.

    “Caution here is warranted,” Matthew Sherwood, head of investment markets research at Perpetual, told Bloomberg. “The situation in Greece resurfaced and prompted investors to take some profits after a strong run in markets in recent weeks.”

    Business confidence ticked higher ahead of the latest Reserve Bank cash rate cut, according to NAB's monthly survey. Confidence rose to +3 last month from a December reading of +2, but remained well below the historic average.

    China's consumer price index slumped to 0.8% last month from 1.5% in December, well short of the 1.1% year-on-year growth anticipated by economists. Producer prices also missed the economists' target, declining 4.3% versus an expected fall of 3.7%.

    China's Shanghai Composite advanced 0.54%, Hong Kong's Hang Seng fell 0.13% and Japan's Nikkei lost 0.82%. Dow futures were recently up 20 points or 0.1%.

    Crude oil futures eased 54 cents this morning to US$52.32 a barrel. Spot gold was off 10 cents at US$1,241.40 an ounce. The dollar was buying 78.23 US cents.

    Well done to those who traded DML and GMM profitably this morning. Good volatility but the hazards are significantly greater on the second day of these sorts of runs. I looked for something with lower risk and consequently lower returns. Decent early bounce trades in IIN and JHX. Back into JHX near the low and also holding SUN and CGF. Need solid recoveries to pay for a nasty loss in MVP - took the hit when the support broke. Dumb trade.
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