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.


Monday, March 31, 2008

Maeket Sentiment

Dow -86=-4
Nasdaq -20=-1
S&P 500 -11=-1
Ftse -25=-1
Nikkei 216=+1
Futures -49=-1

Market Sentiment -7
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Friday, March 28, 2008

Market Sentiment

Dow -120=-4
Nasdaq -43=-2
S&P 500 -15=-2
Ftse 57=+1
Nikkei -102=-1
Futures -41=-1

Market Sentiment -9
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Thursday, March 27, 2008

Market Sentiment

Dow -109=-4
Nasdaq -17=-1
S&P 500 -12=-1
Ftse -29=-1
Nikkei -39=-1
Futures -38=-1

Market Sentiment -9
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Wednesday, March 26, 2008

Market Sentiment

Dow -16=-2
Nasdaq 14=+1
S&P 500 +3=+1
Ftse 194=+1
Nikkei 265=+1
Futures 12=+1

Market Sentiment +3
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Market Sentiment

Dow -16=-2
Nasdaq 14=+1
S&P 500 +3=+1
Ftse 194=+1
Nikkei 265=+1
Futures 12=+1

Market Sentiment +3
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Tuesday, March 25, 2008

Market Sentiment

Dow 187=+4
Nasdaq -69=+2
S&P 500 +20=+2
Ftse -50=-1
Nikkei -2=-1
Futures 11=+1

Market Sentiment +7
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Thursday, March 20, 2008

Market Sentiment

Dow -293=-4
Nasdaq -58=-2
S&P 500 -32=-2
Ftse -60=-1
Nikkei 296=+1
Futures -100=-1

Market Sentiment -9
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Wednesday, March 19, 2008

Market Sentiment

Dow 420=+4
Nasdaq 91=+2
S&P 500 54=+2
Ftse 191=+1
Nikkei 273=+1
Futures 148=+1

Market Sentiment 11
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Tuesday, March 18, 2008

Market Sentiment

Dow 21=+2
Nasdaq -35=-2
S&P 500 -12=-1
Ftse -217=-1
Nikkei -454=-1
Futures +4=+1

Market Sentiment -2

FOR investors in the country's blue-chip financial stocks it is as if the past three years never happened.

Banking stocks have been roasted since the credit crisis spilled into equity markets last November, and the announcement yesterday by JPMorgan Chase that it had agreed to buy Bear Stearns, once a pillar of US finance, for the scrap-yard price of $US2 a share did not help. A year ago Bear Stearns shares were worth $US170.
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Monday, March 17, 2008

Market Sentiment

Dow -195=-4
Nasdaq -51=-2
S&P 500 -27=-2
Ftse -61=-1
Nikkei -192=-1
Futures -36=-1

Market Sentiment -11

The Australian stock market is expected to open as much as 40 points lower on Monday after fresh concerns over the severity of the credit crisis emerged on Wall Street on Friday.

With little local economic news due this week, investors will be focused even more closely on US economic prospects and Wall Street's leads.

US stocks tumbled on Friday after a plan to alleviate a liquidity crisis at Bear Stearns Companies touched off new fears at the extent of the credit crunch.
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Wednesday, March 5, 2008

Market Sentiment

Dow -42+-2
Nasdaq +1=+1
S&P 500 -5=-1
Ftse -51=-1
Nikkei Steady
Futures -46=-1

Market Sentiment -4

As I am on holidays until the 16/3 the Market Sentiment may not be posted daily.I will post whenever i can get to a computer.
Arthur
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Tuesday, March 4, 2008

Market Sentiment

Dow -7=-2
Nasdaq -13=-1
S&P 500 +1=+1
Ftse -66=-1
Nikkei -611=-1
Futures -9=+1

Market Sentiment -3
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Monday, March 3, 2008

Market Sentiment

Dow -316=-4
Nasdaq -60=-2
S&P 500 -37=-2
Ftse -81=-1
Nikkei -322=-1
Futures -144=-1

Market Sentiment -11

The Australian share market is expected to open lower following a weak performance on Wall Street and continued negative commentary, particularly on higher borrowing costs for banks.
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