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.


Tuesday, June 30, 2009

Market Sentiment

Dow 91=4
Nasdaq 6=1
S&P 500 8 = 1
Ftse 53=1
Nikkei -94 =- 1
Futures 41=2
Market Sentiment 8
US stocks have risen as higher oil prices lifted shares of energy companies and fund managers snapped up this quarter's winners to burnish their portfolios.

Energy shares ranked among the quarter's strong performers, and a 3.4 per cent jump in the price of oil lifted them even further on Monday. Exxon Mobil Corp was the Dow's top driver, rising 2.2 per cent to $US70.58.

Monday, June 29, 2009

Market Sentiment

Dow -34=-2
Nasdaq 7=1
S&P 500 -1 = -1
Ftse -12 -1
Nikkei 81 = 1
Futures 1=2
Market Sentiment 0
The Australian sharemarket is expected to open little changed following a subdued session on Wall Street that was dominated by profit-taking.

Friday, June 26, 2009

Market Sentiment

Dow 173=4
Nasdaq 37=2
S&P 500 19 = 2
Ftse -27=- 1
Nikkei 206 = 1
Futures 32=2
Market Sentiment 10

The Australian share market is expected to open higher after US stocks rallied overnight.

Higher commodities and oil prices on Thursday also will buoy the local market.

Thursday, June 25, 2009

Market Sentiment

Dow -23=-2
Nasdaq 27=1
S&P 500 6 = 1
Ftse 50= 1
Nikkei 41 = 1
Futures 22=2
Market Sentiment 4
The Australian share market is expected to open in positive territory after US stocks finished mostly higher overnight.

Wednesday, June 24, 2009

Market Sentiment

Dow -16=-2
Nasdaq -1=-1
S&P 500 2 = 1
Ftse -4=- 1
Nikkei -277 =- 1
Futures -15=-2
Market Sentiment -5
The Australian share market has received mixed leads from overseas, with Wall Street ending mostly weaker, while precious metals and oil prices rose overnight.

Tuesday, June 23, 2009

Market Sentiment

Dow -201=-4
S&P -28 =-2
Nasdaq -61 =-2
Ftse -112 =-1
Nikkei 40 = 1
Futures -89 =-4
Market Sentiment -12

he Australian share market has received strongly negative leads overnight, with Wall Street indices heavily down, along with commodities, including precious metals, oil and copper.

Monday, June 22, 2009

Market Sentiment

Dow -16=-2
S&P 3 =1
Nasdaq 20 = 1
Ftse 65 =1
Nikkei 83 = 1
Futures 0 = 0
Market Sentiment 2
The Australian share market has received a mixed lead from Wall Street after caution once again overcame the US stock market.

Oil, copper and silver prices were down on Friday, while the price of gold was higher.

Friday, June 19, 2009

Market Sentiment

Dow 58= 4
Nasdaq -1=-1
S&P 500 8= 1
Ftse 2= 1
Nikkei -137 =- 1
Futures 21=2
Market Sentiment 6
The Australian share market has received a positive lead from Wall Street, with key indices either up or flat, and copper and oil higher, although precious metals were lower.

Thursday, June 18, 2009

Market Sentiment

Dow -7= -2
Nasdaq 12=1
S&P 500 -1= -1
Ftse -50=- 1
Nikkei 88 = 1
Futures -8=-2
Market Sentiment -4
The Australian share market is expected to open slightly lower after losses on Wall Street and in Europe, although commodity prices rose after a sell-off earlier in the week.

Wednesday, June 17, 2009

Market Sentiment

Dow -107=-4
S&P -12 =-1
Nasdaq -20 = -1
Ftse 3 =1
Nikkei -287 =- 1
Futures -38 =-2
Market Sentiment -8
The Australian share market is expected to open lower after a second day of falls on Wall Street as disappointing economic data gave investors a reason to continue to sell stocks.

Tuesday, June 16, 2009

Market Sentiment

Dow -187=-4
S&P -22 =-2
Nasdaq -42 = -2
Ftse -116 =-1
Nikkei -96 =- 1
Futures -58 =-4
Market Sentiment -14

The Australian share market is expected to open lower after significant falls on Wall Street and in Europe as profit-taking hit commodity-based stocks.

Monday, June 15, 2009

Market Sentiment

Dow 28= 2
Nasdaq -4=-1
S&P 500 1= 1
Ftse -20=- 1
Nikkei 154 = 1
Futures -2=-2
Market Sentiment no bias

Friday, June 12, 2009

Market Sentiment 12th June 2009

Dow 31 = 2
Nas 9 = 1
S&P 5 = 1
Ftse 25 = 1
Nikkei 141 = 1
Futures 13 = 2
Market Sentiment = 8

Thursday, June 11, 2009

Market Sentiment 11th June 2009

Dow -24 = -2
Nas -7 = -1
S&P -3 = -1
Ftse 31 = 1
Nikkei 0.49 = 1
Futures 24 = 2
Market Sentiment = 0 Even

Wednesday, June 10, 2009

Market Sentiment 10th June 2009

Dow -1 = -2
Nas 17 = 1
S&P 3 = 1
Ftse -0.4 = -1
Nikkei 0 = 1
Futures 53 = 4
Market Sentiment = 4

Tuesday, June 9, 2009

Market Sentiment 9th June 2009

Dow 1 = 2
Nas -7 = -1
S&P -0.95 = -1
Ftse -33 = -1
Nikkei -90 = -1
Futures -7 = -1
Market Sentiment = -3

Monday, June 8, 2009

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Market Sentiment 8th June 2009

Dow 12 = 2
Nas -0.6 = -1
S&P -2.37 = -1
Ftse 51 = 1
Nikkei 0 = 1
Futures 14 = 2
Market Sentiment = 4

The Australian Market is closed today

Friday, June 5, 2009

Market Sentiment 5th June 2009

Dow 75 = 4
Nas 24 = 1
S&P 10 = 1
Ftse 3 = -1
Nikkei 0 = 1
Futures 19 = 2
Market Sentiment = 10

The Australian Market opened stronger on a good lead from Wall Street and news BHP & RIO had struck a deal on their W.A. Iron Ore production saving billions.

Thursday, June 4, 2009

Market Sentiment 4th June 2009

Dow -65 = -4
Nas -10 = -1
S&P -12 = -1
Ftse -93 = -1
Nikkei 0 = -1
Futures -4 = -2
Market Sentiment = -10

Dow off on worse than expected economic data and oil fell on a surprise increase in inventories.
US Labour figures are due out Friday.

Wednesday, June 3, 2009

Market Sentiment 3rd June 2009

Dow 19 = 2
Nas 8 = 1
S&P 1 = 1
Ftse -29 = 1
Nikkei 0 = 1
Futures 16 = 2
Market Sentiment = 8

The Dow closed up 19 points but news that the market is about to be flooded with a heap of stock offerings to raise capital from several financial big guns dampened gains.

Market Sentiment 2nd June 2009

Dow 221 = 4
Nas 54 = 2
S&P 23 = 2
Ftse 88 = 1
Nikkei 0 = 1
Futures 38 = 2
Market Sentiment = 12

Arthur is on holidays until the 12th June.

Monday, June 1, 2009

Market Sentiment

Dow 97 = 4
Nas 23 = 1
S&P 12 = 1
Ftse 30 = 1
Nikkei 71 = 1
Futures 46 = 1
Market Sentiment = 9

Australian stocks are likely to rise, with resource companies set to lead on upbeat global economic data suggesting overseas commodities demand would underpin a global recovery.

But the imminent bankruptcy of US carmaker General Motors Corp could undermine gains. GM's collapse would be the largest-ever industrial Chapter 11 bankruptcy petition and the third-largest in US history.