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, October 31, 2008
Market Sentiment
Nasdaq 41=2
S&P 500 24=2
Ftse 49=1
Nikkei 818= 1
Futures -4=-2
Market Sentiment 8
The Australian share market is expected to open flat to positively after commodity prices fell overnight and Wall Street posted what were, by the end of the day, reasonable gains.
At 0715 AEDT, the December Share Price Index futures contract on the Sydney Futures Exchange was down four points at 4.014.
Thursday, October 30, 2008
Market Sentiment
Nasdaq 8=1
S&P 500 -10=-1
Ftse 316=1
Nikkei 590= 1
Futures 33=2
Market Sentiment Nil
The Australian share market is expected to open stronger today following a volatile session on Wall Street and strong gains on European markets.
Wednesday, October 29, 2008
Market Sentiment
Nasdaq 144=2
S&P 500 92=2
Ftse 74=1
Nikkei 459= 1
Futures 242=4
Market Sentiment 14
The Australian share market is expected to open strongly today after world markets surged overnight.
Tuesday, October 28, 2008
Market Sentiment
Nasdaq -46=-2
S&P 500 -28=-2
Ftse -31=-1
Nikkei -486=- 1
Futures 2=2
Market Sentiment -8
The Australian share market is expected to open flat today after US stocks see-sawed overnight. Asian markets fell heavily yesterday.
At 0706 AEDT, the December Share Price Index futures contract on the Sydney Futures Exchange was up two points at 3,793.
The Australian Office of Financial Management is due to announce its latest Treasury bond tender result today, while the National Australia Bank will release its business survey for the September quarter.
Monday, October 27, 2008
Market Sentiment
Nasdaq -52=-2
S&P 500 -31=-1
Ftse -204=-1
Nikkei -812=- 1
Futures -37=-2
Market Sentiment -12
Australian shares are expected to open lower on Monday after Wall Street joined stock markets around the world in a huge sell-off on Friday.
Friday, October 24, 2008
Market Sentiment
Nasdaq -12=-1
S&P 500 11=1
Ftse 47=1
Nikkei -214=- 1
Futures -63=-1
Market Sentiment 3
Australian stocks are set for another negative session, despite US stocks rebounding in a volatile session marked by investor jitters on recession and some sense that the market may have hit bottom.
Thursday, October 23, 2008
Market Sentiment
Nasdaq -81=-2
S&P 500 -58=-2
Ftse -189=-1
Nikkei -632=- 1
Futures -191=-1
Market Sentiment -11
Australian markets are set to open sharply lower after US stocks tumbled for a second day as disappointing profits and outlooks from a number of major US companies compounded growing global recession fears.
Energy stocks fell heavily as demand destruction fears took their toll on commodities, oil dropped more than seven per cent, touching a new 16-month low, while the price of copper was hovering near three-year lows.
Wednesday, October 22, 2008
Market Sentiment
Nasdaq -73=-2
S&P 500 -30=-2
Ftse -53=-1
Nikkei 301= 1
Futures -126=-1
Market Sentiment -9
Australian stocks are tipped to open lower after Wall St slipped on a pullback in commodity shares and a rash of companies released disappointing earnings and outlooks.
Monday, October 20, 2008
Market Sentiment
Nasdaq -6=-1
S&P 500 -6=-2
Ftse 202=1
Nikkei 253= 1
Futures -21=-1
Market Sentiment -5
The Australian share market has been given a mixed lead from overseas markets, after Europe's share market rallied 4.2 per cent on Friday, while Wall Street shed 1.5 per cent.
On Friday, the Australian share market failed to translate a late surge on Wall Street into a gain on the local markets, shedding one per cent.
Friday, October 17, 2008
Market Sentiment
Nasdaq 89=2
S&P 500 38=2
Ftse -218=-1
Nikkei -1089= -1
Futures 206=1
Market Sentiment 7
The Australian share market is expected to open higher after US stocks gained in a late rally early this morning, amid ongoing volatility on markets.
Thursday, October 16, 2008
Market Sentiment
Nasdaq -151=-2
S&P 500 -90=-2
Ftse -315=-1
Nikkei -100= 1
Futures -301=-1
Market Sentiment -9
The Australian share market is set for a sharp decline at the open, after Wall St plunged on growing recession fears, poor economic data and remarks by Fed chairman Ben Bernanke that the US economy was under sever threat from the credit crisis.
Wednesday, October 15, 2008
Market Sentiment
Nasdaq -65=-2
S&P 500 -5=-1
Ftse 137=1
Nikkei 1171= 1
Futures -99=-1
Market Sentiment -4
The Australian share market is set to open lower after US stocks fell on fears that the global economy may not avert recession, despite the US treasury pumping $US250 billion into its banks.
Tuesday, October 14, 2008
Market Sentiment
Nasdaq 195=2
S&P 500 104=2
Ftse 325=1
Nikkei holiday
Futures 306=1
Market Sentiment 10
Australian stocks are expected to open stronger as Wall street posted its biggest one-day gain after countries around the world moved to restore confidence in the banking sector.
Market Sentiment
Nasdaq 195=2
S&P 500 104=2
Ftse 325=1
Nikkei holiday
Futures 306=1
Market Sentiment 10
Australian stocks are expected to open stronger as Wall street posted its biggest one-day gain after countries around the world moved to restore confidence in the banking sector.
Monday, October 13, 2008
Market Sentiment
Nasdaq 4=1
S&P 500 –11=-1
Ftse -382=-1
Nikkei -881=-1
Futures 27=1
Market Sentiment -5
Australian stocks are expected to open flat on Monday as Wall street closed the week modestly lower following its horror session on Thursday.
AMP Investments chief economist Shane Oliver said the federal government's announcement that it would guarantee all money deposits for the next three years would have little impact on Monday's market.
Friday, October 10, 2008
Market Sentiment
Nasdaq -95=-2
S&P 500 –75=-2
Ftse -53=-1
Nikkei -46=-1
Futures -180=-1
Market Sentiment 11
The Australian share market looks headed for a third straight decline at the open after Wall Street losses deepened into a seventh consecutive session.
Thursday, October 9, 2008
Market Sentiment
Nasdaq -15=-1
S&P 500 –11=-1
Ftse -239=-1
Nikkei -952=-1
Futures -12=-1
Market Sentiment -9
The Australian share market is set to open weaker for the second straight session after Wall Street made it six consecutive losses.
Trading in the US was particularly volatile, with the major indexes in positive territory towards the end of trading before dipping into the black.
Wednesday, October 8, 2008
Market Sentiment
Nasdaq -108=-2
S&P 500 –61=-2
Ftse 16=1
Nikkei -317=-1
Futures -266=-1
Market Sentiment -9
he Australian share market is expected to open significantly lower after Wall Street extended losses into a fifth session, plunging more than five per cent.
Gains made in the previous session on the back of the Reserve Bank of Australia's surprise one per cent rate cut will in all likelihood be handed back, as the weakness of the US financial sector spills into the local market.
The Dow Jones Industrial Average slipped 5.11 per cent, or 508.39, it's lowest level since October 2003. It brings the index's losses for the past five sessions to more than 1,400 points. The S&P 500 dived 5.74 per cent to finish below 1,000 points for the first time in more than five years.
Tuesday, October 7, 2008
Market Sentiment
Nasdaq -42=-2
S&P 500 –84=-2
Ftse -391=-1
Nikkei -465=-1
Futures -178=-1
Market Sentiment -11
Another horror night on Wall Street is expected to push the Australian share market down sharply, but investors could potentially draw support from an expected rate cut from the Reserve Bank of Australia.
Monday, October 6, 2008
Market Sentiment
Nasdaq -29=-1
S&P 500 –15=-2
Ftse 110=1
Nikkei -217=-1
Futures -48=-1
Market Sentiment -8
The Australian share market is expected to open weaker despite the US Congress approving a revised version of the $US700 billion Wall Street bailout on Friday.
US stocks reacted poorly to the bill's passing, wondering whether the economy was possibly headed for a recession even with the bailout package.
Friday, October 3, 2008
Market Sentiment
Nasdaq -93=-2
S&P 500 –47=-2
Ftse -89=-1
Nikkei -214=-1
Futures -95=-1
Market Sentiment -11
Local stocks may trade lower after US equities markets fell by close to four per cent, while Europe suffered less but was also in the red.
The key Wall Street indices all were down, as were commodities, including oil, gold, silver, and copper.
Thursday, October 2, 2008
Market Sentiment
Nasdaq -22=-1
S&P 500 -5=-1
Ftse 57=1
Nikkei 108=1
Futures 28=1
Market Sentiment -1
Australian stocks have received a flat lead today, with Wall Street markets finishing slightly down, including stocks and oil, although gold and silver were higher.
In Europe, the British and French bourses were up moderately, but the Eurozone's largest economy, Germany, saw its key DAX stocks index fall.
Wednesday, October 1, 2008
Market Sentiment
Nasdaq 99 =2
S&P 500 58=2
Ftse 84=1
Nikkei -484=-1
Futures 127=1
Market Sentiment 9
Australian stocks are expected to show a stronger performance today, following a stronger performance on Wall Street overnight.