Trading Day: 8th July

The S&P/ASX 200 opened higher and has built on these gains from very positive leads from US overnight, and now after midday is up 47 points or 1% to 4652 points.

Other Asian markets have similar gains, with the Nikkei 225 up 1% at 10170 points, and the Hang Seng up 1.17% at 22,794 points.

Other risk assets are up, with the AUD steady at 1.0768 against the USD, whilst gold shoots higher to $1531 USD an ounce. WTI crude is down slightly today after a strong overnight move to $98.38 USD per barrel.

Movers and Shakers
It’s green across the board. The miners are leading the charge, with the four major banks close behind. CBA and NAB are up 0.8% and 0.6% respectively, whilst ANZ and WBC are up 0.7% and 1.4%

BHP is up 1.2%, at $44.94 and RIO also up 1% at $84.38

In other ASX200 stocks, Lynas (LYC) is powering ahead, up 7%, with Gunns (GNS) up nearly 6%, with Paperlink (PPX) and Pacific Brands up over 5% each.

The losers include Ausenco (AAX) down 3% and Bluescope Steel (BSL) down 1.4%

Daily Chart
The daily chart shows today’s current move has broken past ignificant resistance at or about 4600 points, albeit on very light volume. The 260 day WMA (grey line) is the pivot point of the current market activity (and the next target in this rally – around 4700 points).

So far, this looks like a trader-led rally, although buoyed somewhat by the “good” unemployment numbers from the US and other dataflows. My long term system is still displaying “don’t go long here” signals until we surpass the 4700 point level, which the market wants to gravitate towards.

We move into a busy northern summer and southern winter earnings season, and for the Aussie market, the whispers are out that earnings for non-mining companies will be “subdued”. Let’s see.

Click to enlarge

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