Think Financial Markets - Excellence In Trading Financial Markets: May 2007

Think Financial Markets - Excellence In Trading Financial Markets

Market Sentiment

It is essential that we have a general feeling of which direction our market may trade on any given day.

To achieve this it is necessary to be aware of how global markets have performed on the previous day as well as during the night.

We measure this sentiment by allocating points to certain global indicies to measure their strength or weakness.

We look firstly to The Dow Jones Index. This index is one of the world’s most influential and as such rates very highly in determining the daily sentiment.

We allocate between 2 pts plus or minus if the overnight movement is less than 50pts or 4pts if over 50pts

The next most important indicator is the SPI200 which is the futures contract covering the Australian markets top 200 stocks and trades almost 24hours per day.

We also allocate between 2 and 4 pts as per the Dow.

Then we add both the Nasdaq and the S&P 500 indicies from the U.S they are allocated points as follows

Nasdaq above /below 30 ,plus or minus 2pts or less than 30, 1pt

S&P 500 above /below 15, plus or minus 2pts or less than 15, 1pt

Next we add the FTSE 100 results from England and the NIKKEI 250 from Japan which are allocated 1pt for a plus or minus result.

The maximum points on our table are 14 and variations of this will gauge bullish or bearish sentiment.

Other very important overnight markets to be taken into consideration when trading the Australian market are firstly the strength or weakness in the Aussie dollar versus the US dollar and we rarely have a good day if the commodity markets have been sold down during the night.

Thursday, May 31, 2007

Market Sentiment 31/05/2007

Dow +112 =4
Nas +21 =1
S&P +12 =1
Ftse -4 =-1
Nik -176 =-1
ASX Futures +47 =1

Market Sentiment = +5

Wednesday, May 30, 2007

Market Sentiment for 30/05/2007

Dow +14 =2
Nas +15 =1
S&P +2 =1
Ftse +36 =1
Nik +85 =1
ASX Futures -5 =-1

Market Sentiment = 5

Tuesday, May 29, 2007

Market Sentiment for 29/05/2007

Dow Holiday
Nas Holiday
S&P Holiday
Ftse Holiday
Nik 101 1
ASX Futures -16 = -1

Market Sentiment = 0/2

Expect a day of indecision

Saturday, May 26, 2007

Market Sentiment for 28/5/2007

Dow +66 =4
Nas +19 =1
S&P +8 =1
Ftse +5 =1
Nik -216 =-1
ASX Futures +29 =1

Market Sentiment = +7

Friday, May 25, 2007

Good evening Think Financial members. This is the begining of our continual communication for you all.
Regards

Peter

Market Sentiment

•You may have heard the term “When the US coughs Australia catches a cold”.
•As traders we do not like surprises so therefore we develop as many ways as possible to stack the odds in our favour.
•It is essential that you have an indication of what the market is likely to do on the day you trade.

The Daily Market Sentiment is derived from the overnight trading of various overseas indicies and futures.
It shows a plus or minus figure out of a possible maximum of 11 or minimum of 11 where a plus 11 is very strong from a bullish point of view and minus 11 very strong from a bearish point of view.

This information could be to your advantage if you were considering opening a position or adjusting a stop loss position for that day

market sentiment for 25/7

The market sentiment for today is minus 11 .This is the maximum minus sentiment value

Thursday, May 24, 2007

Australian Economic Growth Set To Continue

The Australian economy will continue to grow according to a report release today by the Organisation For Economic Co-operation and Development (OECD).

Inflation pressures may increase with unemployment likely to remain low.

The report also stated that European areas will see growth as well as Japan, China is also forecast to continue strong expansion.

Test Chart

Test chart of GFF, triangle forming?

May 24 2007 First Post

Hi This is the first post, welcome.

I hope to bring you general comments, views and experiences, that you will find informative or useful as this blog grows.

I am new to this blogging stuff and amazed with the technology that even I can use.

The Australian market is down today following a weak lead from US markets, so I have time to play with this new toy.

ETO option expiry today seems to be creating some "balancing" in big line stocks after good runs.

All for now

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