Daytrading Feb 3 afternoon

  1. 8,508 Posts.
    Thanks Brit and morning regulars.

    Half-time round-up:

    Shares touched a five-month high this morning before caution set in ahead of this afternoon's Reserve Bank cash rate decision.

    At lunchtime the ASX 200 was 11 points or 0.2% higher at 5636 after earlier hitting 5666, the index's highest point since early September. Energy and yield sectors were once again the main drivers of the rally, with energy up 1.8%, utilities 1.8%, property trusts 1.2% and consumer staples 1%.

    Positive trade and construction data further muddied the waters for the RBA's decision-makers ahead of today's 2.30pm EST rate statement. The trade deficit more than halved to $436 million in December from $925 million the previous month, well below the $850 million gap expected by economists. Building approvals declined less than expected over the same month following a 7.5% jump in November. Approvals eased by 3.3%, versus a predicted drop of 5%.

    US equity futures pulled back during a mixed morning in Asia . Dow futures were recently off 29 points or almost 0.2%. China's Shanghai Composite advanced 0.9%, Hong Kong's Hang Seng added 0.16% and Japan's Nikkei dipped 0.13%.

    Crude oil futures cents rose another 60 cents this morning to US$50.07 a barrel. Spot gold was $4 lower at US$1,275.20 an ounce. The dollar was buying 78.2 US cents.

    This morning was one of those fairly rare occasions when the market does exactly what the set-up says it should. Played out pretty much to perfection. Traders had about an hour at the peak to switch from long to short. Almost makes me wish I still traded the index. Trading: slim pickings for pullbacks, but I eventually had a quick toke on PYL when it got under 35 cents. It's not the sort of joint you want to bogart, so I passed it over to the next trader, cause he sure would like a hit (NB: obscure drug/music reference unlikely to mean anything to anyone under the age of 60). QAN also offered a quick trade opportunity from $2.34/35.
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