Think Financial Markets - Excellence In Trading Financial Markets: June 2008

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, June 30, 2008

Market Sentiment

Dow -107 =-4
Nasdaq -6 =-1
S&P 500 –5=-1
Ftse 12 =1
Nikkei -278=-1
Futures -4=-1

Market Sentiment -7
AAP, with Reuters

The Australian share market is expected to open modestly lower after Wall Street fell on concerns that record oil prices and the seemingly endless credit crisis will further damage the economy.

Resource stocks may gain after commodities including oil, gold, copper and tin advanced.

Friday, June 27, 2008

Market Sentiment

Dow -358 =-4
Nasdaq 80 =-2
S&P 500 –39=-2
Ftse -148 =-1
Nikkei -8=-1
Futures -123=-1

Market Sentiment -11
AAP/Reuters

The Australian share market is expected to open significantly lower after US and European stocks slumped overnight on concerns that company profits will be hurt.

Resource stocks may gain after commodities including oil, gold and industrial metals advanced.

The big four banks could be back under pressure on Friday, after a strong rally in the previous session, after Goldman Sachs forecast more writedowns at top US banks

Thursday, June 26, 2008

Market Sentiment

Dow 4 =2
Nasdaq 33 =1
S&P 500 8=1
Ftse 31 =1
Nikkei -20=-1
Futures 1=1

Market Sentiment 5
AAP

The Australian share market is expected to open higher after US stocks gained overnight as the Federal Reserve kept interest rates unchanged.

Resource stocks may fall after commodities including oil, gold and copper declined.

Wednesday, June 25, 2008

Market Sentiment

Dow -35 =-2
Nasdaq -17 =-1
S&P 500 -4=-1
Ftse -33 =-1
Nikkei -8=-1
Futures -53=-1

Market Sentiment -7

AAP/Reuters

The Australian share market is expected to open lower after industrial metals declined in London and US stocks fell overnight on weaker economic data .

Friday, June 20, 2008

Market Sentiment

Dow 34 =2
Nasdaq 32 =2
S&P 500 5=1
Ftse -48 =-1
Nikkei -323=-1
Futures 28=1

Market Sentiment 4

Thursday, June 19, 2008

Market Sentiment

Dow -131 =-4
Nasdaq -28 =-1
S&P 500 -13=-1
Ftse -105 =-1
Nikkei 104=1
Futures -65=-1

Market Sentiment -7

Tuesday, June 17, 2008

Market Sentiment

Dow -38 =-2
Nasdaq 20 =1
S&P 500 Steady
Ftse -8 =-1
Nikkei 381=1
Futures -26=-1

Market Sentiment -2

Monday, June 16, 2008

Market Sentiment

Dow 166=4
Nasdaq 50 =2
S&P 500 20=2
Ftse 12 =1
Nikkei 85=1
Futures 54=1

Market Sentiment 11

Wednesday, June 11, 2008

Please note as i am on holidays till the 24th June i may not be able to post the Market sentiment on a daily basis.

Market Sentiment

Dow 9=2
Nasdaq -11 =-1
S&P 500 -3=-1
Ftse -50 =-1
Nikkei -160=-1
Futures -8=-1

Market Sentiment -3
Reuters/ AAP

Australian shares are set for a lacklustre start with falls in oil and metals prices seen pressuring resource stocks such as BHP Billiton Ltd .

However, financial firms such as Macquarie Group may bounce back from steep falls suffered in the previous session, limiting any downside.

Friday, June 6, 2008

Market Sentiment

Dow 214=4
Nasdaq 47 =2
S&P 500 27=2
Ftse 25 =1
Nikkei -54=-1
Futures 2=1

Market Sentiment 9
AAP

The Australian share market is expected to open higher after US stocks rallied sharply amid strong reports from retailers and data showed a surprising fall in weekly jobless claims.

Energy stocks will benefit from a large jump in the price of oil after falling sharply on Thursday.

Thursday, June 5, 2008

Market Sentiment

Dow -12=-2
Nasdaq 23=1
S&P 500 -1=-1
Ftse -88=-1
Nikkei 226=1
Futures -29=-1

Market Sentiment -3
Reuters

Australian shares are set for a weaker start as falls in oil and metals prices weigh down on resource firms, while ongoing worries about rising inflation and slowing global growth may also dent sentiment.

Wednesday, June 4, 2008

Market Sentiment

Dow -101=-4
Nasdaq -11=-1
S&P 500 -8=-1
Ftse 50=1
Nikkei -231=-1
Futures -25=-1

Market Sentiment -7
Reuters

Australian shares are set for a weaker open, with falls in oil and gold prices likely to pressure resource firms such as Woodside Petroleum Ltd .

While financial shares may recover after renewed worries about fallout from the credit crisis sent the sector tumbling in the previous session, sentiment is likely to remain cautious.

Tuesday, June 3, 2008

Market Sentiment

Dow -135=-4
Nasdaq -31=-2
S&P 500 -15=-2
Ftse -46=-1
Nikkei 415=+1
Futures -65=-1

Market Sentiment -9
Reuters

Australian shares are set to fall, with financial firms such as Macquarie Group likely to lead declines on renewed worries about further fallout from the global credit crunch.

The downgrade of three US investment banks, an ouster of Wachovia's chief executive and a bleak UK housing-market outlook from a British lender reignited concerns that the credit crunch would continue to hurt the world economy.

Monday, June 2, 2008

Market Sentiment

Dow -8=-2
Nasdaq 14=+1
S&P 500 2=+1
Ftse -15=-1
Nikkei 214=+1
Futures 15=+1

Market Sentiment +1
Reuters

Australian shares are set for a firmer start, with gains in oil and gold prices seen supporting resource firms such as Woodside Petroleum Ltd and Newcrest Mining .

But any upside is likely to be limited following a lacklustre performance on Wall Street last Friday, and investors remain concerned about the impact of rising oil prices on inflation, consumer spending and economic growth.

Sophisticated Investor Opportunities

Qualifying investors can apply to join our sophisticated investor program. Investors in this program will have access to pre-IPO and other investment opportunities, including listed share placements, that are unavailable to retail investors. In order to qualify you must have net assets of $2.5 million or have a gross income for each of the last two financial years of at least $250,000 a year. This criteria must relate to the same entity to which the offer is made. A qualified accountant must certify that the person/entity satisfies this criteria and this certification must be no more than two years old. Certificate forms are available, for further information or to register FREE email thinkfinancial@amnet.net.au