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.
Thursday, November 27, 2008
Market Sentiment
Nasdaq 67=2
S&P 500 26=2
Ftse -19=-1
Nikkei -111=-1
Futures 126=4
Market Sentiment 10
Local stocks are expected to open stronger after Wall St received a boost from the technology sector, which offset bleak economic data.
Wednesday, November 26, 2008
Market Sentiment
Nasdaq -7=-1
S&P 500 3=1
Ftse 18=1
Nikkei 413=1
Futures 82=4
Market Sentiment 8
Local shares are tipped to open higher, after Wall St edged up as new moves by the US Federal Reserve to boost consumer lending offset weaker economic data.
Tuesday, November 25, 2008
Market Sentiment
Nasdaq 88=2
S&P 500 58=2
Ftse 372=1
Nikkei holiday
Futures 132=4
Market Sentiment 13
Local stocks are expected to open stronger after a strong session at Wall St, as investors cheered the US Treasury’s move to inject $20 billion into US banking heavyweight Citigroup.
Monday, November 24, 2008
Market Sentiment
Nasdaq 68=2
S&P 500 48=2
Ftse -94=-1
Nikkei 208= 1
Futures 103=4
Market Sentiment 12
The Australian sharemarket is expected to open stronger on the back of a strong rally on Wall Street on Friday.
Friday, November 21, 2008
Market Sentiment
Nasdaq -70=-2
S&P 500 -55=-2
Ftse -131=-1
Nikkei -570=- 1
Futures -163=-4
Market Sentiment -14
The Australian share market is poised for a heavy loss to make it five straight falls after another late Wall Street dive.
US stocks were boosted by hopes of a bailout for the three major US automakers, but a fresh wave of negative data and tumbling commodities prices weighed on the market.
Thursday, November 20, 2008
Market Sentiment
Nasdaq -97=-2
S&P 500 -50=-2
Ftse -203=-1
Nikkei -165=- 1
Futures -165=-4
Market Sentiment -14
Aust shares set for hefty falls
The Australian sharemarket is expected to open weaker after US stocks sank again overnight.
Wednesday, November 19, 2008
Market Sentiment
Nasdaq 1=1
S&P 500 8=1
Ftse 76=1
Nikkei -194=- 1
Futures 14=2
Market Sentiment 8
The Australian share market is expected to open slightly higher after another volatile night on Wall Street finally ended in the black.
Tuesday, November 18, 2008
Market Sentiment
Nasdaq -35=-2
S&P 500 -10=-1
Ftse -101=-1
Nikkei 60= 1
Futures -64=-4
Market Sentiment -11
The Australian share market looks headed for a second straight decline at the open after Wall Street fell on Citigroup's massive job cuts and Japan's recession.
Monday, November 17, 2008
Market Sentiment
Nasdaq -80=-2
S&P 500 -38=-2
Ftse 64=1
Nikkei 224= 1
Futures -64=-4
Market Sentiment -10
The Australian stock market is expected to open in negative territory after falls on Wall Street, as economists predict further volatility ahead.
Friday, November 14, 2008
Market Sentiment
Nasdaq 97=2
S&P 500 57=2
Ftse -13=-1
Nikkei -457=- 1
Futures 170=4
Market Sentiment 10
The Australian sharemarket is expected to open higher, as a fresh four-year slump provides buying opportunities, and after US stocks recovered overnight.
Wall Street rebounded in late trade, led higher by energy, financial and technology shares as investors snapped up beaten-down stocks.
Thursday, November 13, 2008
Market Sentiment
Nasdaq -82=-2
S&P 500 -47=-2
Ftse -65=-1
Nikkei -114=- 1
Futures -185=-4
Market Sentiment -14
The Australian sharemarket is expected to open lower after US stocks slumped overnight as Treasury Secretary Henry Paulson said the government would not buy banks' soured mortgage assets after all.
Mr Paulson's comments hit US financials, which fell sharply.
The largest US electronics chain, Best Buy, also said consumers were slashing spending, creating the worst climate in the company's 42-year history.
Wednesday, November 12, 2008
Market Sentiment
Nasdaq -36=-2
S&P 500 -20=-2
Ftse -157=-1
Nikkei -272=- 1
Futures -69=-4
Market Sentiment -14
The Australian sharemarket is expected to open lower today after US stocks fell overnight on signs that company profits are being hit by the decline in consumer spending.
Monday, November 10, 2008
Market Sentiment
Nasdaq 39=2
S&P 500 26=2
Ftse 93=1
Nikkei -316=- 1
Futures 24=2
Market Sentiment 10
The Australian sharemarket is expected to open higher after US stocks gained on Friday as investors saw buying opportunities following heavy falls earlier in the week.
Friday, November 7, 2008
Market Sentiment
Nasdaq -73=-2
S&P 500 -51=-2
Ftse -258=-1
Nikkei -622=- 1
Futures -180=-4
Market Sentiment -14
Australian shares look set for a sharp decline at the open after investors hammered US and European markets on fears of an increasingly painful global recession.
Thursday, November 6, 2008
Market Sentiment
Nasdaq -81=-2
S&P 500 -53=-2
Ftse -109=-1
Nikkei 407= 1
Futures -143=-4
Market Sentiment -12
The Australian sharemarket appears headed for a weaker opening after investors shifted attention from an historic US election to the faltering US economy.
US stocks were down between two and three per cent overnight as gloomy jobs and services sector data hurt market sentiment. European shares also declined, snapping a six-day winning streak to finish 2.2 per cent weaker.
The Australian market will get a chance to react to yesterday's announcement by Federal Treasurer Wayne Swan that gross domestic product growth is expected to fall to two per cent in the 2009 financial year, with unemployment set to balloon to five per cent midway through the year.
Sunday, November 2, 2008
Market Sentiment
Dow 144=4
Nasdaq 22=1
S&P 500 15=2
Ftse 86=1
Nikkei -452=- 1
Futures 50=4
Market Sentiment 11