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, May 30, 2008

Market Sentiment

Dow 52=+4
Nasdaq 22=+1
S&P 500 7=+1
Ftse -2=-1
Nikkei 415=+1
Futures -20=-1

Market Sentiment +5
Reuters

Australian shares are likely to open flat, after rising more than 1 per cent the previous day, with a positive lead from Wall Street offset by weaker resource stocks after metals and oil prices fell.

Thursday, May 29, 2008

Market Sentiment

Dow 46=+2
Nasdaq 5=+1
S&P 500 5=+1
Ftse 11=+1
Nikkei -184=-1
Futures 39=+1

Market Sentiment +5
AAP

The Australian Share Market may open higher after US stocks gained overnight on a stronger-than-expected durable manufactured goods report.

Declines in all industrial metals prices may weigh on resource stocks, however.

Wednesday, May 28, 2008

Market Sentiment

Dow 69=+4
Nasdaq 37=+2
S&P 500 9=+1
Ftse -29=-1
Nikkei 203=+1
Futures 19=+1

Market Sentiment +8
Reuters/AAP

Australian shares are expected to rise, after a drop in oil prices helped ease worries about slowing consumer and business spending, driving US stocks higher, though weaker commodity prices may pressure the resource sector.

Tuesday, May 27, 2008

Market Sentiment

Dow closed
Nasdaq closed
S&P 500 closed
Ftse closed
Nikkei -322=-1
Futures 4=+1

Market Sentiment even
Reuters

Australian shares are set for a flat open, after falling more than 1 per cent in the previous session, though a further rise in oil prices may buoy energy firms.

Trading volumes are expected to be thin as Wall Street and the London Metal Exchange were closed for a public holiday on Monday.

Monday, May 26, 2008

Market Sentiment

Dow -146=-4
Nasdaq -20=-1
S&P 500 -18=-2
Ftse -94=-1
Nikkei 34=1
Futures -65=-1

Market Sentiment - 8
Reuters

Australian shares are set for a weak start, with sentiment hurt by falls on Wall Street, though stronger oil and gold prices may lend support to the resource sector.

Market Sentiment

Dow -146=-4
Nasdaq -20=-1
S&P 500 -18=-2
Ftse -94=-1
Nikkei 34=1
Futures -65=-1

Market Sentiment 8
Reuters

Australian shares are set for a weak start, with sentiment hurt by falls on Wall Street, though stronger oil and gold prices may lend support to the resource sector.

Friday, May 23, 2008

Market Sentiment

Dow 24=2
Nasdaq 16=1
S&P 500 4=1
Ftse -17=-1
Nikkei 52=1
Futures -7=-1

Market Sentiment 3
Reuters

Australian shares are set for a lacklustre start, with falls in oil and metals prices seen weighing down on resource firms, though gains on Wall Street are likely to limit losses.

Thursday, May 22, 2008

Market Sentiment

Dow -227=-4
Nasdaq -44=-2
S&P 500 -23=-2
Ftse 7=1
Nikkei -234=-1
Futures -80=-1

Market Sentiment -9
Reuters

NEW YORK, May 21 (Reuters) - Oil prices surged $US5 to a record over $US134 a barrel after a US government report showed a surprise drop in crude stockpiles, reinvigorating fears of a supply crunch.

Wednesday, May 21, 2008

Market Sentiment

Dow -199=-4
Nasdaq -24=-2
S&P 500 -13=-2
Ftse -185=-1
Nikkei -110=-1
Futures -76=-1

Market Sentiment -11
AAP

The Australian share market is expected to open more than one per cent lower after rising consumer price data in the US hurt Wall Street and metals prices fell overnight in London.

Tuesday, May 20, 2008

Market Sentiment

Dow 41=2
Nasdaq -13=-1
S&P 500 1=1
Ftse 74=1
Nikkei 50=1
Futures -15=-1

Market Sentiment 3
Reuters

Australian shares are likely to end a four-session winning streak on Tuesday, with falls in industrial metals seen pressuring miners, though energy firms may continue to find support in high oil prices.

Monday, May 19, 2008

Market Sentiment

Dow -6=-2
Nasdaq -5=-1
S&P 500 2=1
Ftse 53=1
Nikkei -32=-1
Futures 22=1

Market Sentiment -1
AAP

The Australian share market is expected to open higher on a flat lead from Wall Street and higher commodity prices.

Friday, May 16, 2008

Market Sentiment

Dow 94=4
Nasdaq 37=2
S&P 500 15=2
Ftse 36=1
Nikkei 133=1
Futures 66=1

Market Sentiment 11
AAP

The Australian market has received positive leads all around this morning, with Wall Street up markedly, base metal prices in London also very robust, and the futures index in Sydney also points the market higher.

Thursday, May 15, 2008

Market Sentimwnt

Dow 66=4
Nasdaq 2=1
S&P 500 6=1
Ftse 4=1
Nikkei 165=1
Futures 11=1

Market Sentiment 9
AAP/Reuters

The Australian market has received mixed leads from overseas overnight, with Wall Street up but base metals down in London.

But in Sydney, the futures index was up. At 0708 AEST, on the Sydney Futures exchange, the June share price index was up eleven points

Wednesday, May 14, 2008

Market Sentiment

Dow -44=-2
Nasdaq -7=-1
S&P 500 -1=-1
Ftse -9=-1
Nikkei 210=1
Futures 1=1

Market Sentiment -3
AAP

The Australian share market has received mixed lead from Wall Street, with the Dow Jones index down 0.34 per cent, the blue chip S&P500 index barely changed and the Nasdaq technical index up slightly.

But resources stocks may receive a boost from strong base metal prices in London Tuesday night.

The lead from the futures index in Sydney is mildly positive.

Tuesday, May 13, 2008

Market Sentiment

Dow 130=4
Nasdaq 43=2
S&P 500 15=2
Ftse 16=1
Nikkei 88=1
Futures 56=1

Market Sentiment 11
AAP

The Australian stock market is expected to open higher on Tuesday, with Wall Street and base metals in London offering positive leads Monday night, and the SPI futures

Monday, May 12, 2008

Market Sentiment

Dow -121=-4
Nasdaq -6=-1
S&P 500 -9=-1
Ftse -66=-1
Nikkei -288=-1
Futures -11=-1

Market Sentiment -9
AAP

The Australian stock market is expected to open lower today, with Wall Street and base metals in London offering negative leads on Friday, and the SPI futures index in Sydney down slightly.

Friday, May 9, 2008

Markey Sentiment

Dow 52=+4
Nasdaq 13=+1
S&P 500 5=+1
Ftse 10=+1
Nikkei -159=-1
Futures -3=-1

Market Sentiment +5
AAP

The Australian stock market is expected to open slightly lower according to the SPI futures index in Sydney, but Wall Street points the way higher, following a surge in global commodity prices.

Thursday, May 8, 2008

Market Sentiment

Dow -206=-4
Nasdaq -45=-2
S&P 500 -26=-2
Ftse 46=+1
Nikkei 53=+1
Futures -74=-1

Market Sentiment -7
AAP

The Australian stock market is expected to open lower, following Wall Street and drops in base metals prices in London overnight.

Wednesday, May 7, 2008

Market Sentiment

Dow 51=+4
Nasdaq 19=+1
S&P 500 11=+1
Ftse -1=-1
Nikkei closed
Futures -38=-1

Market Sentiment +4
AAP

The Australian stock market is expected to open firmer on the back of a positive finish on Wall Street overnight and a surge in metals prices.

Tuesday, May 6, 2008

Market Sentiment

Dow -89=-4
Nasdaq -13=-1
S&P 500 -6=-1
Ftse closed
Nikkei closed
Futures -3=-1

Market Sentiment -7
Reuters

Australian shares are set for a flat open, with energy firms likely to benefit from record high oil prices, offsetting weakness in the financial sector.

Financial firms may come under pressure after their US peers fell on worries that Bank of America Corp , the No. 2 US bank, would scrap its deal to buy Countrywide Financial Corp , the largest US mortgage company.

Bank of America Corp, however, said after the closing bell on Wall Street that it remains committed to acquiring Countrywide.

Monday, May 5, 2008

Market Sentiment

Dow 48=+2
Nasdaq -4=-1
S&P 500 5=+1
Ftse 128=+1
Nikkei 282=+1
Futures 60=+1

Market Sentiment +5

THE sharemarket is tipped to continue its recovery today, opening as much as 50 points higher, after US labour market figures eased fears of a deep downturn in America.

Investors this week will focus on the Reserve Bank of Australia's monthly board meeting amid expectations it will leave official interest rates unchanged.

In addition, house prices figures, jobs data and interim results from two of the big banks - National Australia Bank and St George - will provide an insight into the domestic economy.

Friday, May 2, 2008

Market Sentiment

Dow 190=+4
Nasdaq 68=+2
S&P 500 24=+24
Ftse closed
Nikkei -83=-1
Futures 71=+1

Market Sentiment +8

Thursday, May 1, 2008

Market Sentiment

Dow -12=-2
Nasdaq -13=-1
S&P 500 -5=-1
Ftse -2=1
Nikkei -44=-1
Futures -30

Market Sentiment -7