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.
Tuesday, March 31, 2009
Market Sentiment
Nasdaq -43=- 2
S&P 500 -28=-2
Ftse -136=-1
Nikkei -391 =-1
Futures -57 =-4
Market Sentiment -14
The Australian share market is expected to open lower with US and European stock markets experiencing heavy falls on weaker economic sentiment.
Monday, March 30, 2009
Market Sentiment
Nasdaq -42=- 2
S&P 500 -17=-2
Ftse -26=-1
Nikkei -9 =-1
Futures -37 =-2
Market Sentiment -12
The Australian share market is likely to open lower on Monday after US stocks and commodity prices declined on Friday.
On the Sydney Futures Exchange, the June SPI futures index closed the week down 37 points at 3,640, showing investors are betting that the benchmark S&P/ASX 200 Index will fall on Monday.
Friday, March 27, 2009
Market Sentiment
Nasdaq 58= 2
S&P 500 19=2
Ftse 25=1
Nikkei 156 =1
Futures 44 =2
Market Sentiment 12
The Australian share market is expected to open higher after US stocks gained on an upbeat profit report from electronics retailer Best Buy Co and the increase in unemployment slowed.
Resource and energy stocks may also gain on rising commodity prices including oil, gold and copper.
Thursday, March 26, 2009
Market Sentiment
Nasdaq 12 =1
S&P 500 8=1
Ftse -11=-1
Nikkei -8 =-1
Futures 15 =2
Market Sentiment 6
Australian shares are expected to rise after a late rally on Wall Street following upbeat housing and durable goods data and a recovery in bank stocks.
Financial shares are expected to rise, and gold miners are in for a positive start after gold prices rose sharply on Wednesday as the US dollar weakened. Mining stocks could be flat, after copper prices held steady.
Wednesday, March 25, 2009
Market Sentiment
Nasdaq -39 =-2
S&P 500 -17=-2
Ftse -41=-1
Nikkei 273 =1
Futures -25 =-2
Market Sentiment -10
The Australian share market is expected to open little changed following the pullback in US stocks after Monday's surge.
Resource stocks may decline after metals prices fell.
Tuesday, March 24, 2009
Market Sentiment
Nasdaq 99 =2
S&P 500 54=2
Ftse 110=1
Nikkei 270 =1
Futures 88 =4
Market Sentiment 14
The Australian sharemarket is expected to rise after US stocks surged on the government's plan to help banks remove bad assets from their books and a report that showed existing home sales rose in the US.
Monday, March 23, 2009
Market Sentiment
Nasdaq –26 =-1
S&P 500 -16=-2
Ftse 26=1
Nikkei -26 =-1
Futures –20 =- 2
Market Sentiment -9
The Australian share market is expected to open lower on Monday with investors awaiting details of the US government's latest effort to stimulate the economy.
Wall Street ended a positive week with a slump on Friday as investors took profits from a Wednesday surge, and that trend is expected to feed into the local market when it opens.
Friday, March 20, 2009
Market Sentiment
Nasdaq -8 =-1
S&P 500 -10=-1
Ftse -12=-1
Nikkei -26 =-1
Futures 13= 2
Market Sentiment -6
The Australian share market is expected to open marginally higher on Friday despite a fall in US stocks overnight.
Gold, silver, copper and oil prices leapt higher overnight.
Thursday, March 19, 2009
Market Sentiment
Nasdaq 29 =1
S&P 500 16=1
Ftse -52=-1
Nikkei 23 =1
Futures 31= 2
Market Sentiment 8
The Australian share market is expected to open higher after Wall Street shares rallied after the Federal Reserve announced its plan to buy government bonds in a bid to pull the US economy out of a severe recession.
Wednesday, March 18, 2009
Market Sentiment
Nasdaq 58 =2
S&P 500 24=2
Ftse -7=-1
Nikkei 245 =1
Futures 27= 2
Market Sentiment 10
The Australian share market is expected to open higher after Wall Street shares rallied following a surprise jump in US housing starts buoyed sentiment.
Gold, silver and copper prices were weaker, while oil was higher.
Tuesday, March 17, 2009
Market Sentiment
Nasdaq -27 =-1
S&P 500 -3=-1
Ftse 110=1
Nikkei 135 =1
Futures 8= 2
Market Sentiment no bias
The Australian share market has received a negative lead from Wall Street after US stocks swung lower.
Gold, silver and oil prices were also weaker while copper was higher.
Monday, March 16, 2009
Market Sentiment
Nasdaq 5 =1
S&P 500 6=1
Ftse 42=1
Nikkei 371 =1
Futures 26= 2
Market Sentiment 10
The Australian share market is expected to continue to rise, after United States markets strengthened for the fourth day in a row.
On Wall Street on Friday, stocks lifted in choppy trading amid optimism that the worst may be over for the financial sector and, perhaps, the US economy.
Friday, March 13, 2009
Market Sentiment
Nasdaq 54 =2
S&P 500 29=2
Ftse 18=1
Nikkei -178 =-1
Futures 58= 4
Market Sentiment 12
The Australian share market is likely to open stronger on Friday following gains on Wall Street.
Gold, silver and oil prices also were higher while copper was marginally lower.
Thursday, March 12, 2009
Market Sentiment
Nasdaq 13 =1
S&P 500 2=1
Ftse -21=-1
Nikkei 321 =1
Futures 21= 2
Market Sentiment 6
The Australian share market is likely to open higher following gains on Wall Street overnight.
Gold and silver prices also were higher. Copper was lower, and oil sank more than seven per cent.
Wednesday, March 11, 2009
Market Sentiment
Nasdaq 90 =2
S&P 500 43=2
Ftse 173=1
Nikkei -31 =-1
Futures 99= 4
Market Sentiment 12
The Australian share market is likely to open higher after a rally on Wall Street overnight.
Precious metals and oil price were lower, although copper was higher.
Tuesday, March 10, 2009
Market Sentiment
Nasdaq -25 =-1
S&P 500 -7=-1
Ftse 12=1
Nikkei -87 =-1
Futures-15=- 2
Market Sentiment -8
The Australian share market has is set to edge lower at the open after Wall Street fell as Merck proposed a $US41 billion ($A64.21 billion) takeover of Schering-Plough.
Metals were also lower, although oil added over a dollar.
Monday, March 9, 2009
Market Sentiment
Nasdaq -6 =-1
S&P 500 1=1
Ftse 1=1
Nikkei -260 =-1
Futures 5= 2
Market Sentiment 4
The Australian share market is likely to open flat with a slightly positive leads from Wall Street on Friday. Oil, precious metals and copper were higher, too.
Friday, March 6, 2009
Market Sentiment
Nasdaq 54 =-2
S&P 500 -15=-2
Ftse 116=-1
Nikkei 143 =1
Futures -50=-4
Market Sentiment -12
The Australian share market is expected to open lower with US and European markets falling heavily on more negative economic news and uncertainty over aggressive interest rate cuts in Britain.
Thursday, March 5, 2009
Market Sentiment
Nasdaq 33 =2
S&P 500 17=2
Ftse 134=1
Nikkei 61 =1
Futures 72=4
Market Sentiment 14
The Australian share market is expected to open stronger, after US and European markets rallied overnight and commodity and oil prices climbed higher.
Wednesday, March 4, 2009
Market Sentiment
Nasdaq -2 =-1
S&P 500 -2=-1
Ftse- 114=-1
Nikkei -50 =-1
Futures -25=-2
Market Sentiment -8
The Australian share market is likely to open relatively flat with US markets holding onto modest gains and European markets continuing the falls of the previous day.
Precious metals were down, but copper and oil were higher overnight.
Attention will be on the release of Australia's December quarter national accounts, which provide the key measure of economic growth.
Tuesday, March 3, 2009
Market Sentiment
Nasdaq -55 =-2
S&P 500 -34=-2
Ftse- 204=-1
Nikkei -288 =-1
Futures -78=-2
Market Sentiment -12
The Australian share market has received strong negative leads from overseas, as US markets hit 12-year lows amid worsening concerns about financial companies and the economy.
A further bailout of US insurer American International Group, which also posted a record loss for the December quarter, and dire news from European bank HSBC saw investors flee financial stocks.
Most major markets around the world were down heavily on Monday. Oil, precious metal