Trading Day: jitters continue

The S&P/ASX 200 opened slightly down, reacting strangely to overnight markets which were all up 1 to 1.5%, and at mid-afternoon has lost just over 24 points or 0.5% to 4561 probably in response to Glenn Stevens inflation rhetoric about future rate rises.

Asian markets are mixed, with the Nikkei down 0.13%, the Hang Seng down 0.4% and Singapore steady.

Other risk assets are mixed, with the AUD at 1.0695 against the USD, gold up slightly to $1526 USD an ounce after slipping yesterday. WTI crude is dicing with $100 a barrel again, now at $99.26 USD per barrel.

Movers and Shakers
Its red across the board, with banks giving back yesterday’s gain – with one exception and resources generally down. CBA is down 0.4% to just over $50, ANZ down 0.6%, with WBC down a large 1.77% – but NAB is strangely up almost half a percent? Hmph. BHP is down 0.5% with RIO is down 0.3% to just below $80 per share.

In other ASX200 stocks, St Barbara (SBM) is up nearly 6% whilst ERA has bounced again, up nearly 4%. Platinum Australia (PLA) has sufferred a massive 10% loss for the day, whilst Gunns (GNS) is down similary, losing almost 7 per cent.

ASX200 remains at critical support level
The market is in its 7th consecutive “sideways” day, finding a possible bottom just above the Japanese earthquake lows just above 4500 points.

A break below this level could extend the correction, with the next target at 4200 points – the lows in the May flash crash of 2010. Only a breakout above 4620-4650 points in the coming week or two would confirm a rebound in stocks.

Frustrating time for traders and investors alike!

Daily chart of ASX200

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  1. TPI? Profit downgrade.

    And its been in a bear market since February or so – no buying support, just dropped off…..50% loss so far.

  2. June July August generally has commodities bottom out. So the biggies BHP and RIO to tread water for a few months.

    and the RBA to dictate credit growth of the banks for the next few months with rate changes.

    Doesn’t look very exciting till around Oct/Nov for some decent seasonal rallying into 2012.

    Nothing worse than a boring market.

  3. AJ – tell me about it!

    Market hasnt moved for 7 days now….I dont care where it goes, just want some movement…

    I’m scanning a few Small Ords stocks that might look promising:
    ASL (Ausdrill)
    CCV (Cash converters)
    DTL (Data 3)
    EHL (Emeco)
    IFN (Infigen)
    KCN (Kingsgate – note, I own some of this)
    MDL (Mineral Deposits)
    MND (Monadelphous)
    SDM (Sedgman)

  4. i only trade pure play commodities esp the bulks and occassionally the precious metals.

    i think i need to go on a holiday and come back in mid august to re examine the mkt.

    • I use CFD’s due to the leverage. If I was based overseas, I’d use futures.

      ETF’s in Australia are okay, but the leverage is low and there is little way of going short – there’s pretty much no inverse ETF out there (except the Betashare USD ETF).

      Because CFD’s (contracts for dummies) is banned in the US, they have a proliferation of good ETF”s available to the retail investor.

      Like most things, we are 5-10 years behind…I can’t wait for the property CFD’s to be on the ASX….

      • Thanks Chris…out of interest, which CFD provider do you use? I would prefer to have my stocks and commodities with the one provider if possible.

        Do you trade all commodities or just the precious metals?