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.


Monday, August 31, 2009

Market Sentiment 31st August 2009

Dow -36 = -2
Nasdaq 1 = -1
S&P 500 2 = -1
Ftse 39 = 1
Nikkei 60 = 1
Futures 2 = 2
Market Sentiment 0
The Australian market opened higher despite a flat lead from Wall Street. The RBA meets this week to decide on interest rates.

Friday, August 28, 2009

Market Sentiment 28th August 2009

Dow 37 = 2
Nasdaq 2 = 1
S&P 500 3 = 1
Ftse -21 = -1
Nikkei -165 = -1
Futures 4 = 2
Market Sentiment 4
US GDP data showed the economy contracted by 1%, which was better than expected. Jobless claims also fell.

Thursday, August 27, 2009

Market Sentiment 27th August 2009

Dow 4 = 2
Nasdaq .12 = 1
S&P 500 .20 = 1
Ftse -26 = -1
Nikkei 142 = 1
Futures -10 = -2
Market Sentiment 2
Wall Street was flat despite a report showing US new home sales grew at 9.6% in July, much bigger than expected.

Wednesday, August 26, 2009

Market Sentiment 26th August 2009

Dow 30 = 2
Nasdaq 2 = 1
S&P 500 6 = 1
Ftse 20 = 1
Nikkei -83 = -1
Futures 16 = 2
Market Sentiment 6
Wall Street was higher on news that US house prices have risen for the second quarter for the first time in 3 years.

Tuesday, August 25, 2009

Market Sentiment 25th August 2009

Dow 3 = 2
Nasdaq -0.5 = -1
S&P 500 -2 = -1
Ftse 45 = 1
Nikkei 342 = 1
Futures -22 = -2
Market Sentiment 0
Consumer stocks dragged the Dow off a 70 point high to close just 3 points higher in a lacklustre trading day.

Monday, August 24, 2009

Market Sentiment 24th August 2009

Dow 155 = 4
Nasdaq 31 = 2
S&P 500 18 = 2
Ftse 94 = 1
Nikkei -145 = -1
Futures 69 = 4
Market Sentiment 12
A rise in US home sales and comments from US Federal Reserve Chairman Ben Bernanke boosted stocks as data suggests US economic recovery is underway.

Friday, August 21, 2009

Market sentiment 21st August 2009

Dow 70 = 4
Nasdaq 19 = 1
S&P 500 10 = 1
Ftse 66 = 1
Nikkei 179 = 1
Futures 13 = 2
Market Sentiment 10
US markets were higher on better than expected manufacturing data however unemployment numbers rose.

Thursday, August 20, 2009

Market Sentiment 20th August 2009

Dow 61 = 4
Nasdaq 13 = 1
S&P 500 6 = 1
Ftse 3 = 1
Nikkei -81 = -1
Futures 48 = 2
Market Sentiment 8
The Dow managed to finish higher despite Asia markets falling after the Shanghai Composite index plunged.

Wednesday, August 19, 2009

Market Sentiment 19th August 2009

Dow 82 = 4
Nasdaq 25 = 1
S&P 500 10 = 1
Ftse 40 = 1
Nikkei 16 = 1
Futures 23 = 2
Market Sentiment 10

Tuesday, August 18, 2009

Market Sentiment 18th August 2009

Dow -186 =-4
Nasdaq -54=- 2
S&P 500 -2=-2
Ftse -68=-1
Nikkei 0 = 0
Futures -22=-2
Market Sentiment -11
Australian stocks opened lower following a weak lead from US equities on concerns about the strength of the US economic recovery

Monday, August 17, 2009

Market Sentient

Dow -77 =-4
Nasdaq -24=- 1
S&P 500 -9=-1
Ftse -41=-1
Nikkei 80 =1
Futures -28=-2
Market Sentiment -8
The Australian sharemarket is expected to open lower after a fall on Wall Street on Friday and weaker commodity prices.

Friday, August 14, 2009

Market Sentiment

Dow 37 =2
Nasdaq 11= 1
S&P 500 7=1
Ftse 39=1
Nikkei 82 =1
Futures 41=2
Market Sentiment 8
The Australian sharemarket is expected to open higher after US stocks gained, despite disappointing news on retail sales and jobs.

Higher precious metals and oil prices are expected to lift the local bourse, too.

Thursday, August 13, 2009

Market Sentiment

Dow 120 =4
Nasdaq 29= 1
S&P 500 11=1
Ftse 45=1
Nikkei 150 =-1
Futures 50=4
Market Sentiment 10
The Australian sharemarket is expected to open higher after US stocks rose after the Federal Reserve said the economy was stabilising.

Higher precious metals and oil prices are expected to lift the local bourse, too.

Wednesday, August 12, 2009

Market Sentiment

Dow -97 =-4
Nasdaq -23=- 1
S&P 500 -13=-1
Ftse -51=-1
Nikkei 61 =1
Futures -35=- 2
Market Sentiment -8
The Australian sharemarket is expected to open in the red after US stocks fell overnight on a recurrence of investor anxiety about the US economy.

Lower oil, silver and copper prices are expected to weigh on the local bourse, too, although gold rose a little.

Tuesday, August 11, 2009

Market Sentiment

Dow -32 =-2
Nasdaq -8=- 1
S&P 500 -3=-1
Ftse -9=-1
Nikkei 112 =1
Futures -1=- 2
Market Sentiment -6
The Australian sharemarket has received a weak lead from US equities, which dipped on profit-taking after a four-week rally.

Lower oil and metals prices are expected to weigh on the local bourse, too.

Monday, August 10, 2009

Market Sentiment

Dow 114 =4
Nasdaq 27= 1
S&P 500 13=1
Ftse 41=1
Nikkei 24 =1
Futures 41= 2
Market Sentiment 10
The Australian sharemarket is expected to open higher on Monday, boosted by better than expected US employment data that added to signs that the world's largest economy is pulling out of recession.

Silver and copper prices were higher, while gold and oil prices were lower.

Friday, August 7, 2009

Market Sentiment

Dow -24 =- 2
Nasdaq -20=- 1
S&P 500 -6=-1
Ftse 43=1
Nikkei 136 =1
Futures -17=- 2
Market Sentiment -4
The Australian sharemarket is expected to open lower on Friday, after US equities declined on a rise in people continuing to claim unemployment benefits and lacklustre sales figures from major retailers.

Oil and metals also were lower.

Thursday, August 6, 2009

Market Sentiment

Dow -39 =- 2
Nasdaq -18=- 1
S&P 500 -3=-1
Ftse -24=-1
Nikkei -122 =-1
Futures 3= 2
Market Sentiment -4
The Australian sharemarket is expected to open lower, after US and European equity markets declined following a disappointing report on the US service sector during July, and ahead of US jobs data due on Friday.

Wednesday, August 5, 2009

Market Sentiment

Dow 34 = 2
Nasdaq 3= 1
S&P 500 3=1
Ftse -11=-1
Nikkei 23 =1
Futures 11= 2
Market Sentiment 6


The Australian sharemarket is expected to open modestly higher, after US markets rose to a nine-month high overnight, consolidating recent gains, and the prices of metals gained.

Tuesday, August 4, 2009

Market Sentiment

Dow 115 = 4
Nasdaq 30= 2
S&P 500 15=2
Ftse 74=1
Nikkei -4 =-1
Futures 56= 4
Market Sentiment 12
The Australian sharemarket is expected to open higher, after rising to a nine-month high in the previous session, as US markets gained over one per cent as manufacturing, housing and banking reports suggesting that the economy is gaining strength.

Monday, August 3, 2009

Market Sentiment

Dow 17 = 2
Nasdaq -6=-1
S&P 500 1=1
Ftse -23=-1
Nikkei 192 =1
Futures -2=-2
Market Sentiment 0
The Australian sharemarket is expected to open lower, falling from an almost nine-month high, after subdued stock performances on US markets and declines in Europe on Friday.