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, November 30, 2009

Market Sentiment

Dow -154=-4
Nasdaq -37=-2
S&P 500 -19=-2
Ftse 52=1
Nikkei -302=-1
Futures 37=2
Market Sentiment -6
The Australian sharemarket is expected to open stronger after a lift in European markets following the Dubai debt shock and after it became clear that Dubai's debt had had limited impact on local stocks.

Friday, November 27, 2009

Market Sentiment

Dow holiday
Nasdaq holiday
S&P 500 holiday
Ftse -171=-1
Nikkei -58=-1
Futures -41 =-2
Market Sentiment -4
European shares fell sharply hurt by debt problems in Dubai that sent bank stocks lower while commodity shares slipped on weaker crude and metals prices.
The Australian sharemarket is expected to open sharply lower, despite Wall Street being closed for a holiday, after news emerged that Dubai would seek debt extensions on two of its flagship investment companies.

Thursday, November 26, 2009

Market Sentiment

Dow 31 = 2
Nasdaq 7=1
S&P 500 5=1
Ftse 41=1
Nikkei 40=1
Futures 24 =2
Market Sentiment 8
The Australian sharemarket has received positive leads, as Wall Street posted gains on positive jobs and home sales data.

Wednesday, November 25, 2009

Market Sentiment

Dow -17 =-2
Nasdaq -7=-1
S&P 500 -1=-1
Ftse -32=-1
Nikkei -96=-1
Futures 1 =2
Market Sentiment -4
The Australian sharemarket is set for a flat opening with Wall Street slightly lower on weak economic data.

Tuesday, November 24, 2009

Market Sentiment

Dow 133 =4
Nasdaq 30=2
S&P 500 15=2
Ftse 104=1
Nikkei holiday
Futures 33 =2
Market Sentiment 11
The Australian sharemarket is likely to open higher with US and European markets posting gains on positive US housing data and the impact of a weaker US dollar on commodities.

Monday, November 23, 2009

Market Sentiment

Dow -14 =-2
Nasdaq -11=-1
S&P 500 -4=-1
Ftse -16=-1
Nikkei -52=-1
Futures -7 =-2
Market Sentiment -8
Australian markets have received negative leads overall from overseas since Friday's local session.
In economics news on Monday, the Australian Bureau of Statistics is to release data on sales of new motor vehicles in October.

Friday, November 20, 2009

Market Sentiment

Dow -94 =-4
Nasdaq -36=-2
S&P 500 -15=-2
Ftse -74=-1
Nikkei -127=-1
Futures -45 =-2
Market Sentiment -12

Australian shares are likely to slump on Friday after US equities fell on a stronger dollar and more signs of a subdued US economic recovery.

Metals prices were higher, but the oil price fell.

Thursday, November 19, 2009

Market Sentiment

Dow -11 =-2
Nasdaq -11=-1
S&P 500 -1=-1
Ftse -4=-1
Nikkei -53=-1
Futures 8 =2
Market Sentiment -4
The Australian share market has received mixed leads from overnight trading offshore, with Wall Street's key indices marginally lower, but commodities, including gold and oil, all higher.

Wednesday, November 18, 2009

Dow 30 =2
Nasdaq 6=1
S&P 500 1=1
Ftse -37=-1
Nikkei -51=-1
Futures 28 =2
Market Sentiment 4

The Australian sharemarket may open higher after the prices of crude oil and copper gained overnight, while a report showed inflation was unlikely to be a problem.

Wall Street securities indices were flat.

Tuesday, November 17, 2009

Market Sentiment

Dow 136 =4
Nasdaq 30=2
S&P 500 16=2
Ftse 86=1
Nikkei 21=1
Futures 49 =2
Market Sentiment 12

Monday, November 16, 2009

Market Sentiment

Dow 73 =4
Nasdaq 19=1
S&P 500 6=1
Ftse 20=1
Nikkei -34=-1
Futures 28 =2
Market Sentiment 8
Australian shares are expected to open higher on Monday after US stocks gained on Friday on encouraging earnings news from major retailers and on higher metals prices.

Friday, November 13, 2009

Market Sentiment

Dow -93 =-4
Nasdaq -18=-1
S&P 500 -11=-1
Ftse 10=1
Nikkei -67=-1
Futures -33 =-2
Market Sentiment - 8
The Australian stock market has received negative leads from overseas, with Wall Street's key stock indices lower and commodities prices weaker.
In economics news on Friday, the Australian Office of Financial Management is to conduct a tender of $700 million of June 2014 Commonwealth Government Treasury bonds.

Thursday, November 12, 2009

Market Sentiment

Dow 44 =2
Nasdaq 16=1
S&P 500 6=1
Ftse 36=1
Nikkei 1=1
Futures 20 =2
Market Sentiment 8
The Australian stock market has received positive leads from overseas, with Wall Street's key stock indices higher and commodities prices firmer.
In economics news on Thursday, the Australian Bureau of Statistics releases its labour force report for October at 1130 AEDT.

Wednesday, November 11, 2009

Market Sentiment

Dow 20 =2
Nasdaq -3=-1
S&P 500 -1=-1
Ftse -5=-1
Nikkei 62=1
Futures 21 =2
Market Sentiment 2
The Australian market has received mixed leads from overseas, with Wall Street's key stock indices and commodities prices mostly lower, although the Dow Jones Industrial Average turned positive in afternoon trade and the price of gold was higher.

Tuesday, November 10, 2009

Market Sentiment

Dow 203 =4
Nasdaq 24=1
S&P 500 42=2
Ftse 92 =1
Nikkei 20=1
Futures 78 =4
Market Sentiment 13
The Australian stock market has received strong leads from overseas, with Wall Street's key stocks indices all higher and commodities prices firmer.
In economics news on Tuesday, the National Australia Bank publishes its monthly business survey for October.

Monday, November 9, 2009

Market Sentiment

Dow 17 =2
Nasdaq 7=1
S&P 500 3=1
Ftse 17 =1
Nikkei 72=1
Futures 4 =2
Market Sentiment 8
The Australian market has received mixed leads from overseas for trading, with Wall Street's key stocks indices all higher, along with gold, but other commodities lower.

At 0700 AEDT on the Sydney Futures Exchange, the December share price index contract was four points higher at 4,605, on a volume of 3,001 contracts.

In economic news on Monday, Reserve Bank of Australia (RBA) assistant governor of economics Philip Lowe takes part in a panel discussion at the University Of Western Australia's In the Zone conference.

Friday, November 6, 2009

Market Sentiment

Dow 204 =4
Nasdaq 50=2
S&P 500 20=2
Ftse 18 =1
Nikkei -127=-1
Futures 59 =4
Market Sentiment 12
The Australian market has received a strong lead from US securities trading on Wall Street and gold again was higher, although other metals and oil were lower.

Thursday, November 5, 2009

Market Sentiment

Dow 30 =2
Nasdaq -2=-1
S&P 500 1=1
Ftse 71 =1
Nikkei 375=1
Futures 23 =2
Market Sentiment 6
The Australian sharemarket is expected to open in positive territory after strong leads from Wall Street.
In economic news on Thursday, The Reserve bank of Australia (RBA) governor Glenn Stevens addresses the Melbourne Institute 2009 Economic & Social Outlook Conference dinner on "The Road to Prosperity".

The Australian Bureau of Statistics (ABS) issues international trade data for September.

Wednesday, November 4, 2009

Market Sentiment

Dow -17 =-2
Nasdaq 8=1
S&P 500 3=1
Ftse -67 =-1
Nikkei -232=-1
Futures 12 =2
Market Sentiment no bias today
Australian stocks are set to open little changed on Wednesday, finding some support from miners after a rise in gold and copper prices.

Banks, the market's biggest sector, will be in focus after Westpac Banking Corp, reported a full-year cash profit just ahead of analysts' forecasts and said bad debts have peaked.

Tuesday, November 3, 2009

Market Sentiment

Dow 77 =4
Nasdaq 4=1
S&P 500 7=1
Ftse 60=1
Nikkei 241=-1
Futures 25 =2
Market Sentiment 8
The Australian sharemarket has received generally positive leads from Wall Street, with most major indices higher, along with oil and precious metals, while copper was lower.
In economic news on Tuesday, the Reserve Bank of Australia (RBA) holds its monthly board meeting. Its decision on interest rates is due to be announced at 2.30pm (AEDT).

Monday, November 2, 2009

Market Sentiment

Dow -249 =-4
Nasdaq -52=-2
S&P 500 -30=-2
Ftse -93=-1
Nikkei 144=1
Futures -118 =-4
Market Sentiment -12
Pre-Halloween worries over the sustainability of US economic growth is likely to spark a 2.5 per cent sell-off when the Australian sharemarket opens on Monday ahead of an expected 25 basis point Melbourne Cup day interest rate rise.

Australian futures point to a plunge of 118 points, or 2.5 per cent, for the local bourse in reaction to an October 30 sell-off on Wall Street as euphoria over September growth figures was replaced by concerns over the staying power of recovery from the recession.