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, February 27, 2009

Market Sentiment

Dow -89=-4
Nasdaq -34 =-1
S&P 500 -7=-1
Ftse 67=1
Nikkei -3 =-1
Futures -21=-2

Market Sentiment -8
The Australian share market has received flat leads from Wall Street, with the key indices doing little, precious metals down, but copper and oil both higher at the end of floor trade.

Thursday, February 26, 2009

Market Sentiment

Dow -80=-4
Nasdaq -16 =-1
S&P 500 -8=-1
Ftse 33=1
Nikkei 193 =1
Futures -10=-2

Market Sentiment -6

Wednesday, February 25, 2009

Market Sentiment

Dow 236=4
Nasdaq 54 =2
S&P 500 30=2
Ftse -34=-1
Nikkei -108 =-1
Futures 70 =4

Market Sentiment 10
The Australian market has received a strong lead from Wall Street, although precious metals were down. Copper and oil both were up, however.

Tuesday, February 24, 2009

Market Sentiment

Dow -251=-4
Nasdaq –54 =-2
S&P 500 –27=-2
Ftse -38=-1
Nikkei -40 =-1
Futures –78 =-4

Market Sentiment -14
The Australian share market is likely to open lower after shares on Wall Street slid again. All three key Wall Street indices were down, as were oil, gold and silver. Copper was up, however.

Friday, February 20, 2009

Market Sentiment

Dow 90=-4
Nasdaq –25 =-1
S&P 500 –9 =-1
Ftse 12=1
Nikkei 23 =1
Futures –13 =-2

Market Sentiment -6
The Australian share market again has received mixed leads from overseas overnight, with Wall Street indices down, precious metals lower, but copper and oil both were higher.

Thursday, February 19, 2009

Market Sentiment

Dow 3 = 2
Nasdaq –3 =-1
S&P 500 –1 =-1
Ftse -27=-1
Nikkei -111 =-1
Futures –19 =-2

Market Sentiment -4
The Australian share market is set to open marginally lower, after While Wall Street was slightly higher in late-afternoon trade, precious metals were higher, copper was up, too, but crude oil ended lower.

Wednesday, February 18, 2009

Market Sentiment

Dow -298 = -4
Nasdaq –64 =-2
S&P 500 –38 =-2
Ftse -101=-1
Nikkei -105 =-1
Futures –70 =-4

Market Sentiment -14
The Australian share market has received a strongly negative lead from Wall Street securities trading, although precious metals were up. Copper and oil were down.

Tuesday, February 17, 2009

Market Sentiment

Dow holiday
Nasdaq holiday
S&P 500 holiday
Ftse -55=-1
Nikkei -29 =-1
Futures 2=2

Market Sentiment no bias
The Australian share market has received no leads from the US, with Wall Street closed for a public holiday.

Monday, February 16, 2009

Market Sentiment

Dow -82=- 4
Nasdaq -7=-1
S&P 500 -8=-1
Ftse -13=-1
Nikkei 74 =1
Futures -22=-2

Market Sentiment - 8
The Australian share market is expected to open lower after a one per cent fall on Wall Street on Friday following concerns about US Banks.

Friday, February 13, 2009

Market Sentiment

Dow -7=-2
Nasdaq 12=1
S&P 500 1=1
Ftse -32=-1
Nikkei -240 =-1
Futures 20=2

Market Sentiment no bias
The Australian share market is expected to open lower as US and European markets suffer falls on scepticism about the effectiveness of a US economic stimulus plan.

The outcome of the federal government's $42 billion economic stimulus package's second passage through the Senate also may affect the local bourse.

Thursday, February 12, 2009

Market Sentiment

Dow 61= 4
Nasdaq 8=1
S&P 500 2=1
Ftse 21=1
Nikkei -23 =-1
Futures 13=2

Market Sentiment 8
The Australian share market is expected to open slightly higher as European and US stocks rebound from Wednesday's big sell-offs.

Wednesday, February 11, 2009

Market Sentiment

Dow -381= -4
Nasdaq -67=-2
S&P 500 -43=-2
Ftse -95=-1
Nikkei -23 =-1
Futures –80=-4

Market Sentiment -14
The Australian share market is expected to open lower as Wall Street and European markets took sharp falls in response to details of a US Treasury bank stabilisation plan.

Tuesday, February 10, 2009

Market Sentiment

Dow -8= -2
Nasdaq S=1
S&P 500 1=1
Ftse 16=1
Nikkei -107 =-1
Futures 27=2

Market Sentiment 2
The Australian share market is likely to open flat as Wall Street awaits details of the US government's overhaul of a $US700 billion ($A1.04 trillion) financial rescue program.

Monday, February 9, 2009

Market Sentiment

Dow 217= 4
Nasdaq 45=2
S&P 500 23=2
Ftse 63=1
Nikkei 127 =1
Futures 85=4

Market Sentiment 14
The Australian share market is expected to open higher, buoyed by a surge on Wall Street and stronger European markets.

CommSec chief economist Craig James said the market should see a very positive start.

"The only thing holding us back was the fact that oil and gold prices were a little bit lower and that a higher Australian dollar will be a negative for the mining and energy sectors," he said.

Friday, February 6, 2009

Market Sentiment

Dow 106= 4
Nasdaq 31=2
S&P 500 14=2
Ftse 1=1
Nikkei -89 =-1
Futures 56=4

Market Sentiment 12
Australian shares have been given a positive lead from Wall St, which rose overnight on hopes that a government plan to aid the financial system would help banks stem losses and revive lending.

Thursday, February 5, 2009

Market Sentiment

Dow -122= -4
Nasdaq -1=- 1
S&P 500 -6=-1
Ftse 64=1
Nikkei 213 =1
Futures 15=2

Market Sentiment -2
Australian shares have been given a negative lead from Wall St overnight, which lost ground as uncertainty about the US government's plan to stabilise the bank sector overshadowed better than expected economic data.

Wednesday, February 4, 2009

Market Sentiment

Dow 141= 4
Nasdaq 22= 1
S&P 500 12=1
Ftse 87=1
Nikkei –49 =-1
Futures 27=2

Market Sentiment 8
Australian shares are expected to open higher following modest gains on Wall St overnight after data showed a surprising rise in December home sales.

Tuesday, February 3, 2009

Market Sentiment

Dow -64=- 4
Nasdaq 18= 1
S&P 500 -1=-1
Ftse -72=-1
Nikkei –120 =-1
Futures 7=2

Market Sentiment -4
The Australian stock market is expected to open lower after a mostly weaker lead from Wall Street before turning its attention to the Reserve Bank of Australia's interest rate decision.

Monday, February 2, 2009

Market Sentiment

Dow -148=- 4
Nasdaq -31=- 2
S&P 500 -19=-2
Ftse -40=-1
Nikkei -257=-1
Futures -64=-4

Market Sentiment -14
The Australian stock market is expected to open lower, after the falls in US equities, before attention turns to the Reserve Bank of Australia's interest rate decision.

Gold and copper miner Newcrest Mining Ltd is in a trading halt, pending an announcement to the market. According to Sky News, the company is planning a share placement.

Its securities will begin trading again not later than the market open on Wednesday. Newcrest shares last traded at $31.00.