Think Financial Markets - Excellence In Trading Financial Markets

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, January 31, 2008

Market Sentiment 31ST JANUARY CORRECTION

CORRECTION CORRECTION
Dow -37=-2
Nasdaq -9=-1
S&P 500 -6=-1
Ftse -48=-1
Nikkei -134=-1
Futures -12=-1

Market Sentiment -7

Market Sentiment

Dow 35=+2
Nasdaq 7=+1
S&P 500 -4=-1
Ftse -48=-1
Nikkei -134=-1
Futures 7=+1

Market Sentiment +1

Friday, January 25, 2008

Market Sentiment

Dow 108=+4
Nasdaq 45=+2
S&P 500 13=+1
Ftse 267=+1
Nikkei 256=+1
Futures 76=+1

Market Sentiment +10

Australian shares are poised to
climb for a third straight day on Friday after Wall Street rose
on hopes a newly agreed U.S. government stimulus package would
head off a recession and pushed up oil and metals prices.
Stock index futures pointed to a higher opening, rising 1.4
percent to 5,619.0, 38.6 points above the underlying benchmark
S&P/ASX 200 index <.AXJO>, which finished up 3 percent on
Thursday.
Despite climbing nearly 8 percent over the past two sessions,
the market is still 3 percent short of clawing back all of the
week's losses.
Stronger copper and oil prices should propel the world's
biggest miner, BHP Billiton , and other mining and energy
stocks higher and steer the broader market upward.
BHP's New York-traded shares jumped 3.1 percent to
A$62.29, equating to a price of around A$35.19 for its local
shares, 37 cents above their close on Thursday.

Thursday, January 24, 2008

Market Sentiment

Dow 299=+4
Nasdaq 24=+1
S&P 500 28=+2
Ftse -130=-1
Nikkei 256=+1
Futures 91=+1

Market Sentiment +8

Australia's core inflation rate accelerated to its fastest pace in 16 years last quarter, adding greatly to the domestic case for a rise in interest rates even as turmoil in global markets seemed to argue against one

Wednesday, January 23, 2008

Market Sentiment

Dow -128=-4
Nasdaq -48=-2
S&P 500 -15=-2
Ftse 162=+1
Nikkei -753=-1
Futures 184=+1

Market Sentiment -7

Blue chip stocks have plummeted, a major online broking website has crashed and investors have raced for the exit door as the Australian stock market suffered its worst one-day fall in more than 10 years, losing $96 billion.

Fear of a recession in the US, and the likely downside effect on global economic growth, has panicked markets from London to China and prompted a repricing of stocks.

Tuesday, January 22, 2008

Market Sentiment

Dow closed
Nasdaq closed
S&P 500 closed
Ftse -324=-1
Nikkei -535=-1
Futures -158=-1

Market Sentiment -3

The Australian share market fell nearly 3 per cent on Monday, extending its longest losing streak in a quarter of a century, on renewed US recession fears and concern over the health of global financial markets.

Monday, January 21, 2008

Market Sentiment

Dow -60=-4
Nasdaq -7=-1
S&P 500 -8=-1
Ftse -1=-1
Nikkei 78=+1
Futures -75=-1

Market Sentiment -7

Sunday, January 20, 2008

Continued from Market Pulse 19/01/08 Front Page

If I have said it once, I've said it 100 times, if you can't trade shares successfully for profit, then you have no business trading leveraged instruments such as CFDs, options and warrants.
The recent market falls have highlighted that the majority of the public trade one side of the market, the upside. The majority use these leveraged instruments to do so, failing to fully understand or use the protection benefits these CFDs, options and warrants often give.
Also over the past few weeks you would have seen there is just as much money made trading the downside, than there is trading the upside. According to newspaper reports $136 billion has been lost on the Australian All Ords index in two weeks. Knowing this money just dosen't evaporate, some have made $136 billion in two weeks trading the downside.
When was the last time you purchased a put option/warrant to protect a stock position? When was the last time you used a CFD to short sell a stock? (sell at a high price with the intent to buy back at a lower price).
If you are having trouble understanding what I am on about your probably not alone, but if you use these CFDs, options or warrants to trade the upward side of the market, and are having trouble understanding what I am on about, my guess is you are in a spot of bother with the recent market events.
If you would like to discuss this further, leave a comment by clicking on the word "comments" (in green) at the bottom of this post or send me an email at thinkfinancial@amnet.net.au
Regards
Anthony

Friday, January 18, 2008

Market Sentiment

Dow -307=-4
Nasdaq -48=-2
S&P 500 -40=-2
Ftse -41=-1
Nikkei 1=+1
Futures -157=-1

Market Sentiment -9

Thursday, January 17, 2008

Market Sentiment

Dow -35=-2
Nasdaq -23=-1
S&P 500 -8=-1
Ftse -83=-1
Nikkei -468=-1
Futures -19=-1

Market Sentiment -7

Wednesday, January 16, 2008

Market Sentiment

Dow -277=-4
Nasdaq -61=-2
S&P 500 -35=-2
Ftse -190=-1
Nikkei -138=-1
Futures -99=-1

Market Sentiment -11

Australian shares are set to
fall heavily in early trade on Wednesday, extending a run of
declines to an eighth session, after heavy losses on Wall Street
on a drop in U.S. retail sales and a big loss for Citigroup.
Australian share price index futures closed down 99
points to 5,852.0 ahead of the market opening, a discount of 108
points to Tuesday's close in the underlying Australian S&P/ASX
200 index

Tuesday, January 15, 2008

Market Sentiment

Dow 172=+4
Nasdaq 38=+2
S&P 500 15=+2
Ftse 14=+1
Nikkei closed
Futures 61=+1

Market Sentiment +10

The Australian share market is
expected to open higher on Tuesday, breaking a six-session losing
streak, after markets rebounded on Wall Street, while the big
miners could rise on firmer commodities prices.
All the major U.S. stock indexes rose by over 1 percent on
Monday, helped by strong results from IBM that eased some
of the worries about the economy that hit the market last week.

Monday, January 14, 2008

Market Sentiment

Dow -247=-4
Nasdaq -49=-2
S&P 500 -21=-2
Ftse -47=-1
Nikkei -277=-1
Futures -47=-1

Market Sentiment -11


THE Australian sharemarket is set to plunge further into the red this morning, after investors suffered a major case of nerves on Wall Street on Friday.

So far this year the Australian bourse has shed almost 6 per cent of its value, making it the worst start in 17 years and today it is expected to extend its losing streak to six consecutive trading days.

Strategists are punting on the sharemarket losing as much as 50 points in early trading on mounting fears about the effect of the US economy sliding into recession.

Friday, January 11, 2008

Market Sentiment

Dow 118=+4
Nasdaq 14=+1
S&P 500 11=+1
Ftse -1=-1
Nikkei -211=-1
Futures 40=+1

Market Sentiment 5

THE stockmarket closed down - but only a little bit - for the fourth day in a row yesterday, amid continuing fears of a recession in the United States.

The ASX 200 index closed down 9 points at 6078.7, while the All Ordinaries had lost 12.2 to 6147.3.

Thursday, January 10, 2008

Market Sentiment

Dow 146=+4
Nasdaq 34=+2
S&P 500 19=+2
Ftse -84=-1
Nikkei 70=1
Futures 44=+1

Market Sentiment 9

Wednesday, January 9, 2008

Market Sentiment

Dow -238=-4
Nasdaq -59=-2
S&P 500 -26=-2
Ftse 21=1
Nikkei 28=1
Futures -75=-1

Market Sentiment -7

Tuesday, January 8, 2008

Market Sentiment

Dow 27=+2
Nasdaq -5=-1
S&P 500 5=+1
Ftse -13=-1
Nikkei -191=-1
Futures -19=-1

Market Sentiment -1

THE sharemarket finished in a sea of red yesterday, dragged down by a steep drop in US equity markets following the release of higher than expected unemployment figures.

Other factors hampering the local market included lower base metal and oil prices on Friday.

Monday, January 7, 2008

Market Sentiment

Dow -256=-4
Nasdaq -98=-2
S&P 500 -36=-2
Ftse -131=-1
Nikkei -616=-1
Futures -141=-1

Market Sentiment -11

Friday, January 4, 2008

Market Sentiment

Dow 13=+2
Nasdaq -7=-1
S&P 500 even
Ftse 63=+1
Nikkei n/a
Futures -19=-1

Market Sentiment 1

Thursday, January 3, 2008

Market Sentiment

Dow -221=-4
Nasdaq -43=-2
S&P 500 -21=-2
Ftse -40=-1
Nikkei n/a
Futures -83=-1

Market Sentiment -10

Wednesday, January 2, 2008

Market Sentiment

Dow -101=-4
Nasdaq -22=-1
S&P 500 -10=-1
Ftse -20=-1
Nikkei -256=-1
Futures n/a

Market Sentiment -8