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, October 30, 2009
Market Sentiment
Nasdaq 38=2
S&P 500 23=2
Ftse 57=1
Nikkei -184=-1
Futures 81 =4
Market Sentiment 12
The Australian sharemarket is expected to open significantly higher as Wall Street rallied on better-than-expected United States economic growth figures.
In economic news on Friday, the Reserve Bank of Australia releases financial aggregates data for September.
Thursday, October 29, 2009
Market Sentiment
Nasdaq -56=-2
S&P 500 -21=-2
Ftse -121=-1
Nikkei -137=-1
Futures -80 =-4
Market Sentiment -14
The Australian sharemarket is expected to continue its recent run of losses on Thursday as Wall Street fell sharply on weaker economic data and a lower forecast for upcoming growth figures.
In economic news on Thursday, the Australian Bureau of Statistics releases its 2008/09 annual report.
The Housing Industry Association/RP Data Residential Land Report for the June quarter is also released.
Wednesday, October 28, 2009
Market Sentiment
Nasdaq -26=- 1
S&P 500 -4=-1
Ftse 9=1
Nikkei -150=-1
Futures -21 =-2
Market Sentiment -2
The Australian sharemarket is expected to open lower as mixed economic data gave Wall Street a mixed day of trading.
In economic news on Wednesday, The Australian Bureau of Statistics releases consumer price index data for the September quarter.
Reserve Bank of Australia assistant governor, financial, Malcolm Edey addresses the FINSIA Financial Services Conference.
The Federal Department of Employment and Workplace Relations releases its vacancy report.
Tuesday, October 27, 2009
Market Sentiment
Nasdaq -13=- 1
S&P 500 -13=-1
Ftse -51=-1
Nikkei 80=1
Futures -40 =-2
Market Sentiment -8
Monday, October 26, 2009
Market Sentiment
Nasdaq -11=- 1
S&P 500 -13=-1
Ftse 35=1
Nikkei 16=1
Futures -28 =-2
Market Sentiment -6
The Australian sharemarket is expected to open lower after US markets fell one per cent on Friday as investors booked profits following a busy week for company earnings reports.
Friday, October 23, 2009
Market Sentiment
Nasdaq 15= 1
S&P 500 12=1
Ftse -50=-1
Nikkei -66=-1
Futures 41 =2
Market Sentiment 6
The Australian share market is expected to open stronger on Friday after financial stocks propelled Wall Street higher overnight.
Thursday, October 22, 2009
Market Sentiment
Nasdaq -13=- 1
S&P 500 -10=-1
Ftse 14=1
Nikkei -3=-1
Futures -33 =-2
Market Sentiment -8
The Australian sharemarket is expected to open weaker following a fall on Wall Street as disappointing corporate earnings results acted as a drag on the US market, while the resources sector could cap losses after a strong night for commodities.
Wednesday, October 21, 2009
Market Sentiment
Nasdaq -13=- 1
S&P 500 -7=-1
Ftse -38=-1
Nikkei 100=1
Futures -16 =-2
Market Sentiment -8
The Australian sharemarket is expected to open weaker following a fall on Wall Street after weak economic data sparked a selling spree.
Tuesday, October 20, 2009
Market Sentiment
Nasdaq 20= 1
S&P 500 10=1
Ftse 91=1
Nikkei -21=-1
Futures 43=2
Market Sentiment 8
The Australian sharemarket is expected to open higher after US stocks rallied on better-than-estimated corporate earnings.
Monday, October 19, 2009
Market Sentiment 19th October 2009
Nasdaq -16 = -1
S&P 500 -8 = -1
Ftse -32 = -1
Nikkei 18 = 1
Futures -14 = -2
Market Sentiment -8
Wall Street was lower after a round of disappointing earnings reports and an unexpected fall in consumer sentiment.
Friday, October 16, 2009
Market Sentiment 16th October 2009
Nasdaq 1 = 1
S&P 500 4 = 1
Ftse -33 = -1
Nikkei 178 = 1
Futures 4 = 2
Market Sentiment 6
Wall Street was higher due to a surge in the price of oil which lifted energy stocks and a list better than expected earning reports. Next week will be a busy time for companies reporting with Microsoft one of the biggest due Friday.
Thursday, October 15, 2009
Market Sentiment 15th October 2009
Nasdaq 32 = 2
S&P 500 18 = 2
Ftse 102 = 1
Nikkei -16 = -1
Futures 49 = 2
Market Sentiment 10
The Dow closed above the 10 000 point mark for the first time in over a year boosted by a better forecast from Intel and a US$3.6 billion dollar quarterly profit from JP Morgan Chase.
Wednesday, October 14, 2009
Market Sentiment 14th October 2009
Nasdaq .075 = 1
S&P 500 -3 = -1
Ftse -56 = -1
Nikkei 60 = 1
Futures 13 = -2
Market Sentiment -4
Tuesday, October 13, 2009
Market Sentiment 13th October 2009
Nasdaq 0.4 = -1
S&P 500 4 = 1
Ftse 55 = 1
Nikkei n/a = 0
Futures 19 = 2
Market Sentiment 5
Monday, October 12, 2009
Market Sentiment 12th October 2009
Nasdaq 15 = 1
S&P 500 6 = 1
Ftse 7 = 1
Nikkei 183 = 1
Futures 34 = 2
Market Sentiment 10
Friday, October 9, 2009
Market Sentiment 9th October 2009
Nasdaq 13 = 1
S&P 500 7 = 1
Ftse 45 = 1
Nikkei 32 = 1
Futures 20 = 2
Market Sentiment 10
Federal Reserve chairman Bernanke says will tighten monetary policy "when the economic outlook improves sufficiently."
Thursday, October 8, 2009
Market Sentiment 8th October 2009
Nasdaq 6 = 1
S&P 500 2 = 1
Ftse -29 = -1
Nikkei 107 = 1
Futures -6 = 2
Market Sentiment 2
US stocks finished slightly lower as the third quarter earnings reporting season kicked off.
Wednesday, October 7, 2009
Market Sentiment 7th October 2009
Nasdaq 35 = 2
S&P 500 14 = 2
Ftse 113 = 1
Nikkei 17 = 1
Futures 59 = 4
Market Sentiment 14
Australia first to raise interest rates, by .25 basis points. DOW higher on expected higher company profits. Gold hits intraday high of 1045 an ounce as the US dollar slumped on reports that Gulf oil producers as well as China, Russia, Japan and France are planning to end US dollar based oil pricing.
Tuesday, October 6, 2009
Market Sentiment 6th October 2009
Nasdaq 20 = 1
S&P 500 15 = 2
Ftse 35 = 1
Nikkei -57 = -1
Futures 41 = 2
Market Sentiment 9
Monday, October 5, 2009
Market Sentiment 5th October 2009
Nasdaq -9 = -1
S&P 500 -4 = -1
Ftse -59 = -1
Nikkei -246 = -1
Futures -21 = -2
Market Sentiment -8
Friday, October 2, 2009
Market Sentiment 2nd October 2009
Nasdaq -64 = -2
S&P 500 -27 = -2
Ftse -86 = -1
Nikkei -154 = -1
Futures -75 = -4
Market Sentiment -14
Weak US factory data and a rise in unemployment saw the DOW finish 203 points lower, however there was some good signs from housing sales up 6.4% and construction rose .08%
Thursday, October 1, 2009
Market Sentiment 1st October 2009
Nasdaq -1 = -1
S&P 500 -3 = -1
Ftse -25 = -1
Nikkei 33 = 1
Futures -8 = -2
Market Sentiment -6
The Dow posted its best quarter in 11 years despite closing slightly lower overnight.