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.


Friday, February 29, 2008

Market Sentiment

Dow -112=-4
Nasdaq -22=-1
S&P 500 -12=-1
Ftse -111=-1
Nikkei -106=-1
Futures -42=-1

Market Sentiment -9

Thursday, February 28, 2008

Market Sentiment

Dow 9=+2
Nasdaq 9=+1
S&P 500 -1=-1
Ftse -11=-1
Nikkei 207=+1
Futures -36=-1

Market Sentiment +1

Wednesday, February 27, 2008

Market Sentiment

Dow 115=+4
Nasdaq 18=+1
S&P 500 9=+1
Ftse 88=+1
Nikkei -90=-1
Futures 60=+1

Market Sentiment +7
THE sharemarket closed in the black again - that's two up days in a row - following a good US lead, with banks and consumer staples performing strongly

Tuesday, February 26, 2008

Market Sentiment

Dow 189=+4
Nasdaq 24=+1
S&P 500 19=+2
Ftse 111=+1
Nikkei 414=+1
Futures 71=+1

Market Sentiment +10

Monday, February 25, 2008

Market Sentiment

Dow 97=+4
Nasdaq 4=+1
S&P 500 11=+1
Ftse -44=-1
Nikkei -188=-1
Futures 43=+1

Market Sentiment 5

Friday, February 22, 2008

Market Sentiment

Dow -143=-4
Nasdaq -27=-1
S&P 500 -18=-2
Ftse 39=+1
Nikkei 378=+1
Futures -51=-1

Market Sentiment -6

THE sharemarket recovered most of Wednesday's losses yesterday but that is the way ping-pong balls bounce down the stairs.

Still, there were solid earnings results from Telstra, Qantas, Fairfax and other big companies, along with a stronger resources sector and buoyant US market

Thursday, February 21, 2008

Market Sentiment

Dow 90=+4
Nasdaq 21=+1
S&P 500 11=+1
Ftse -73=-1
Nikkei -448=-1
Futures 68=+1

Market Sentiment +5

Wednesday, February 20, 2008

Market Sentiment

Dow -11=-2
Nasdaq -16=-1
S&P 500 -1=-1
Ftse 20=+1
Nikkei 22=+1
Futures -8=-1

Market Sentiment -3

THE Australian economy is so strong that an official cash rate of 8 per cent could be needed to bring inflation under control, after the Reserve Bank indicated further policy tightenings would occur this year.

Minutes of the RBA's February meeting released yesterday show the board argued the merits of a 50 basis point increase -- rather than the 25 basis point rise delivered -- as a way to rein in excessive spending in the economy

Tuesday, February 19, 2008

Markrt Sentiment

Dow holiday
Nasdaq holiday
S&P 500 holiday
Ftse 159=+1
Nikkei 13=+1
Futures -10=-1

Market Sentiment +1

Monday, February 18, 2008

Market Sentiment

Dow -29=-2
Nasdaq -11=-1
S&P 500 1=+1
Ftse -92=-1
Nikkei -4=-1
Futures -7=-1

Market Sentiment -5

A MIXED opening is expected for the Australian share market today as investors prepare to digest a barrage of earnings results through the week.

Investors will be keen to hear the profit outlooks delivered by more than 50 companies due to report their interim results.

Friday, February 15, 2008

Market Sentiment

Dow -175=-4
Nasdaq -41=-2
S&P 500 - 18=-2
Ftse -1=-1
Nikkei 558=+1
Futures -88=-1

Market Sentiment -9

Thursday, February 14, 2008

Market Sentiment

Dow 179=+4
Nasdaq 54=+2
S&P 500 18=+2
Ftse -30=-1
Nikkei 46=+1
Futures 57=+1

Market Sentiment +9

Wednesday, February 13, 2008

Market Sentiment

Dow 133=+4
Nasdaq S=0
S&P 500 10=+1
Ftse 202=+1
Nikkei 5=+1
Futures 65=+1

Market Sentiment +8

THE 2008 reporting season has turned into one of the roughest for Australian companies, which are being dumped by unforgiving investors worried by the business fallout from the credit crunch, regardless of good or bad results.

Although the share market finished more than 1 per cent higher, stocks that reported yesteday were sold down

Tuesday, February 12, 2008

Market Sentiment

Dow 58=+2
Nasdaq 15=+1
S&P 500 8=+1
Ftse -76=-1
Nikkei -190=-1
Futures 36=+1

Market Sentiment +5

Friday, February 8, 2008

Market Sentiment

Dow 47=+2
Nasdaq 14=+1
S&P 500 10=+1
Ftse -151=-1
Nikkei 108=+1
Futures 28=+1

Market Sentiment +5

Thursday, February 7, 2008

Market Sentiment

Dow -65=-4
Nasdaq -31=-2
S&P 500 -10=-1
Ftse +7=+1
Nikkei -646=-1
Futures 6=+1

Market Sentiment -6

Wednesday, February 6, 2008

Market Sentiment

Dow -369=-4
Nasdaq -72=-2
S&P 500 -44=-2
Ftse -158=-1
Nikkei -114=-1
Futures -156=-1

Market Sentiment -11

Tuesday, February 5, 2008

Market Sentiment

Dow -108=-4
Nasdaq -31=-1
S&P 500 -15=-2
Ftse -3=-1
Nikkei 363=+1
Futures -69=-1

Market Sentiment -9

Homebuyers can expect to be repaying around $50 extra per month on an average mortgage after the Reserve Bank of Australia (RBA) board meeting.

The RBA is widely tipped to raise its key interest cash rate by a quarter of a percentage point at 2.30pm (AEDT) after the meeting in a further attempt to rein in inflation.

Economists expect the RBA will raise its cash rate to an 11-year high of 7.0 per cent from 6.75 per cent, its 11th consecutive increase since 2002.

This would make the average standard variable mortgage rate around 8.85 per cent.

Monday, February 4, 2008

Market Sentiment

Dow 93=+4
Nasdaq 24=+1
S&P 500 17=+2
Ftse 149=+1
Nikkei -95=-1
Futures 202=+1

Market Sentiment +8

AUSTRALIAN stock valuations are set to continue their upward trajectory this week following a strong Wall Street last week but an expected interest rate rise mid-week may dampen enthusiasm on the local bourse.

The mooted mega-mergers of BHP and Rio, and Microsoft and Yahoo, have helped to boost sentiment.

Friday, February 1, 2008

Market Sentiment

Dow 207=+4
Nasdaq 41=+2
S&P 500 23=+2
Ftse 43=+1
Nikkei 247=+1
Futures 77=+1

Market Sentiment 11