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, July 31, 2009

Market Sentiment

Dow 84 = 4
Nasdaq 17=2
S&P 500 12=1
Ftse 84=1
Nikkei 52 =1
Futures 33=2
Market Sentiment 11
The Australian sharemarket is expected to open higher on Friday after gains in equities in the US, Europe and Asia overnight, and in commodities.

Thursday, July 30, 2009

Market Sentiment

Dow -26 =-2
Nasdaq -8=-1
S&P 500 -4=-1
Ftse 19=1
Nikkei 26 =1
Futures 3=2
Market Sentiment 0
Australian shares are set to open lower, led down by miners and energy companies, after metals and oil prices slid on fears China might curb lending to try to stem market excesses, which could stall a global recovery.

The China worries and a sharp drop in US durable goods orders in June rattled Wall Street overnight, where the major indices fell between 0.3 per cent and 0.5 per cent.

Wednesday, July 29, 2009

Market Sentiment

Dow -12 =-2
Nasdaq 8=1
S&P 500 -3=-1
Ftse -57=-1
Nikkei -1 =-1
Futures -21=-2
Market Sentiment -6
The Australian sharemarket is expected to open in negative territory after US stocks finished mixed, and commodity prices dropped overnight.

Tuesday, July 28, 2009

Market Sentiment

Dow 15 =2
Nasdaq 2=1
S&P 500 3=1
Ftse 10=1
Nikkei 144 =1
Futures 5=2
Market Sentiment 8
The Australian sharemarket is likely to open slightly higher after a moderately positive lead from Wall Street.

Monday, July 27, 2009

Market Sentiment

Dow 24 =2
Nasdaq -8=-1
S&P 500 3=1
Ftse 17=1
Nikkei 152 =1
Futures 26=2
Market Sentiment 6
The Australian sharemarket is likely to open higher after a mostly positive lead from the US and the commodity market.

Friday, July 24, 2009

Market Sentiment

Dow 188 =4
Nasdaq 47=2
S&P 500 22=2
Ftse 66=1
Nikkei 70 =1
Futures 61=4
Market Sentiment 14
The Australian sharemarket has received solid leads from overseas after US stocks surged and oil prices gained overnight.

Gold and silver prices also were higher, while copper closed slightly weaker.

Thursday, July 23, 2009

Market Sentiment

Dow -34=-2
Nasdaq 10=1
S&P 500 -1=-1
Ftse 13=1
Nikkei -254=-1
Futures -6=-2
Market Sentiment -4
The Australian sharemarket is expected to open weaker after US stocks fell and oil prices dropped overnight.

Higher gold, silver and copper prices could help lift the market, however.

Wednesday, July 22, 2009

Market Sentiment

Dow 68=4
Nasdaq 7=1
S&P 500 3=1
Ftse 38=1
Nikkei 257 =1
Futures 15=2
Market Sentiment 10
The Australian sharemarket is expected to open in positive territory after US stocks rose and oil prices gained overnight.

Lower gold, silver and copper prices could limit gains, however

Tuesday, July 21, 2009

Market Sentiment

Dow 104=4
Nasdaq 23=1
S&P 500 11=1
Ftse 55=1
Nikkei 51 =1
Futures 42=2
Market Sentiment 10
The Australian sharemarket has received positive leads overnight from higher stocks and commodity prices overseas.
n economic news on Tuesday, the Reserve Bank of Australia publishes minutes of its July 7 monetary policy board meeting.

The Australian Bureau of Statistics releases new motor vehicles sales data for June.

Monday, July 20, 2009

Market Sentiment

Dow 32=2
Nasdaq 2=1
S&P 500 -1=-1
Ftse 15=1
Nikkei 51 =1
Futures 17=2
Market Sentiment 6

The Australian sharemarket is expected open in positive territory after Wall Street closed mostly higher on Friday.

Friday, July 17, 2009

Market Sentiment

Dow 96=4
Nasdaq 22=1
S&P 500 8=1
Ftse 15=1
Nikkei 75 =1
Futures 36=2
Market Sentiment 10
The Australian sharemarket is expected to continue the week's gains, following another positive day on Wall Street on corporate earnings reports.

Thursday, July 16, 2009

Market Sentiment

Dow 257=4
Nasdaq 63=2
S&P 500 27=2
Ftse 109=1
Nikkei 7 =1
Futures 72=4
Market Sentiment 14
The Australian sharemarket is expected to open significantly higher after a strong surge on Wall Street sparked by a brighter economic outlook from the Federal Reserve.

Wednesday, July 15, 2009

Market Sentiment

Dow 28=2
Nasdaq 7=1
S&P 500 5=1
Ftse 36=1
Nikkei 211 =1
Futures 35=2
Market Sentiment 8
US stocks have managed modest gains as better-than-expected corporate profits overshadowed concerns about weak consumer demand.

Positive surprises on the earnings front could boost markets again on Wednesday as chip maker Intel reported results after the bell that surpassed expectations, driving stock index futures sharply higher.

Tuesday, July 14, 2009

Market Sentiment

Dow 185=4
Nasdaq 37=2
S&P 500 22=2
Ftse 75=1
Nikkei -237 = -1
Futures 58=4
Market Sentiment 12
The Australian sharemarket is expected to open stronger following significant gains on Wall Street on a surge in financial stocks ahead of the US reporting season.

Monday, July 13, 2009

Market Sentiment Monday 13th July 2009

Dow -32= -2
Nasdaq 3 = 1
S&P 500 -3 =-1
Ftse -31 =-1
Nikkei 0 = 0
Futures -16 = -2
Market Sentiment -3

Friday, July 10, 2009

Market Sentiment

Dow 5= 2
Nasdaq 1=1
S&P 500 3=1
Ftse 18=1
Nikkei -130 = -1
Futures 13=2
Market Sentiment 6

Thursday, July 9, 2009

Market Sentiment

Dow 15= 2
Nasdaq 1=1
S&P 500 -1=-1
Ftse -47=-1
Nikkei -227 =- 1
Futures -4=-2
Market Sentiment -2

The Australian sharemarket is likely to open lower on Thursday following a sharp drop in commodity prices and a mixed lead from Wall Street.

Wednesday, July 8, 2009

Market Sentiment

Dow -161=-4
Nasdaq -41=-2
S&P 500 -18=-2
Ftse -8=-1
Nikkei -33 =- 1
Futures -62=-4
Market Sentiment -14
The Australian sharemarket is likely to open lower on Wednesday following a negative lead from the US and weaker commodity prices.

Tuesday, July 7, 2009

Market Sentiment

Dow 44=+2
Nasdaq -12=-1
S&P 500 2=+1
Ftse -41=-1
Nikkei -135 =- 1
Futures -1=-2
Market Sentiment -2
The Australian sharemarket is likely to open flat on Tuesday following a mixed lead from Wall Street and futures pointing down slightly.
In economic news, the Reserve Bank of Australia holds its monthly board meeting and is due to announce its decision on interest rate at 1430 AEST.

In data, the Australian Industry Group/Housing Industry Association Australian Performance of Construction Index for June also is due, and the Manpower/Melbourne Institute employment report for July also is scheduled for release.

Monday, July 6, 2009

Market Sentiment

Dow holiday
Nasdaq holiday
S&P 500 holiday
Ftse 2=1
Nikkei -60 =- 1
Futures -7=-2
Market Sentiment -2

The Australian sharemarket is expected to open flat after sluggish trade on the European and Asian markets and no direction from Wall Street, which was closed on Friday for the July 4 public holiday.

Friday, July 3, 2009

Market Sentiment

Dow -223=-4
Nasdaq -49 =-2
S&P 500 -27 =-2
Ftse -103=-1
Nikkei -64 =- 1
Futures -82=-4
Market Sentiment -14
The Australian sharemarket is expected to open significantly lower after heavy falls on Wall Street and European markets.

Oil and base metal prices also plummeted, likely to spark falls in local resources stocks.

Thursday, July 2, 2009

Market Sentiment

Dow 57=4
Nasdaq 11 =1
S&P 500 4 = 1
Ftse 92=1
Nikkei -19 =- 1
Futures 16=2
Market Sentiment 8

Wednesday, July 1, 2009

Market Sentiment

Dow -82=-4
Nasdaq -9 =-1
S&P 500 -8 = -1
Ftse -45=-1
Nikkei 175 = 1
Futures -24=-2
Market Sentiment -8
The Australian sharemarket is expected to open lower after a decline in US consumer confidence saw Wall Street and European markets fall on concerns about an economic recovery