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.
Thursday, December 24, 2009
Market Sentiment
Nasdaq 17=1
S&P 500 3=1
Ftse 44=1
Nikkei 195=1
Futures 12=2
Market Sentiment 8
The Australian share market is likely to open higher as overseas markets provide a positive lead amid light trading volumes ahead of the Christmas break.
Wednesday, December 23, 2009
Market Sentiment
Nasdaq 15=1
S&P 500 4=1
Ftse 35=1
Nikkei 195=1
Futures 20=2
Market Sentiment 10
The Australian share market is expected to open higher after Wall Street benefited from economic data that paints a brighter picture for the United States.
Tuesday, December 22, 2009
Market Sentiment
Nasdaq 26=1
S&P 500 12=1
Ftse 97=1
Nikkei 41=1
Futures 33=2
Market Sentiment 10
The Australian share market should open higher after Wall Street rallied on confidence deriving from several corporate deals.
Monday, December 21, 2009
Market Sentiment
Nasdaq 32=2
S&P 500 6=1
Ftse -21=-1
Nikkei -22=-1
Futures 16=2
Market Sentiment 5
The Australian share market is likely to open stronger after gains on Wall Street and commodity markets in their last sessions.
Trading volumes will be low in a shortened week for the Christmas holiday, meaning any moves will be slight and volatility will increase.
Friday, December 18, 2009
Market Sentiment
Nasdaq -27=-1
S&P 500 -13=-1
Ftse -103=-1
Nikkei -14=-1
Futures -32=-2
Market Sentiment -10
The Australian stock market is set to open lower with sharp falls in overseas markets on disappointing corporate results in the US and debt concerns in Europe. Metals were trading lower and oil was flat.
Thursday, December 17, 2009
Market Sentiment
Nasdaq 6=1
S&P 500 1=1
Ftse 34=1
Nikkei 94=1
Futures 5=2
Market Sentiment 4
The Australian stock market has received positive leads from overseas markets during Wednesday's offshore trading session.
Wall Street was firmer in late afternoon trade in New York, while oil and metals prices were stronger.
Wednesday, December 16, 2009
Market Sentiment
Nasdaq -11=-1
S&P 500 -6=-1
Ftse -30=-1
Nikkei -22=-1
Futures -22=-2
Market Sentiment -8
NEW YORK - US stocks fell, halting the Dow's and the S&P 500's four-day winning streak, as investors fretted about the outlook for interest rates following a sharper-than-expected increase in the November Producer Price Index.
Tuesday, December 15, 2009
Markrt Sentiment
Nasdaq 22=1
S&P 500 8=1
Ftse 54=1
Nikkei -2=-1
Futures -7=-2
Market Sentiment 2
The Australian stock market has received a mixed set of leads from Monday night's offshore trading session.
While Wall Street was higher in late afternoon trade and metals prices firmer, the price of crude oil was weaker.
Monday, December 14, 2009
Market Sentiment
Nasdaq -1=-1
S&P 500 4=1
Ftse 17=1
Nikkei 245=1
Futures -3=-2
Market Sentiment 4
The Australian stock market has received a mixed set of leads from overseas during weekend offshore trading.
While Wall Street finished higher after investors were buoyed by better-than-expected US retail sales figures, the price of oil and gold eased.
Friday, December 11, 2009
Market Sentiment
Nasdaq 7=1
S&P 500 6=1
Ftse 40=1
Nikkei -142=-1
Futures 26=2
Market Sentiment 8
Australian stocks are likely to open higher on Friday after US stocks gained on better than expected US export figures
Thursday, December 10, 2009
Market Sentiment
Nasdaq 11=1
S&P 500 4=1
Ftse -19=-1
Nikkei -136=-1
Futures 5=2
Market Sentiment 6
Australian shares are likely to open lower after commodity prices declined overnight, and concerns increase about the mounting levels of national debt overseas.
Wednesday, December 9, 2009
Market Sentiment
Nasdaq -17=-1
S&P 500 -11=-1
Ftse -88=-1
Nikkei -27=-1
Futures -54=-4
Market Sentiment -12
Australian shares are likely to open lower after credit downgrades and warnings directed at several governments, reports showed manufacturing is weak in the UK and Germany, and major US companies announced poor earnings.
Tuesday, December 8, 2009
Market Sentiment
Nasdaq -5=-1
S&P 500 -3=-1
Ftse -12=-1
Nikkei 145=1
Futures 1=2
Market Sentiment 2
Australian shares may open lower after US markets declined in mid-afternoon trade, led by banks and brokerages.
Monday, December 7, 2009
Market Sentiment
Nasdaq 21=1
S&P 500 6=1
Ftse 9=1
Nikkei 45=1
Futures 23=2
Market Sentiment 8
Australian shares are likely to open moderately higher after equities in the US and Europe gained on a report that showed job cuts in the US slowed sharply in November.
Friday, December 4, 2009
Market Sentiment
Nasdaq -12=-1
S&P 500 -9=-1
Ftse -14=-1
Nikkei 369=1
Futures -34=-2
Market Sentiment -8
The Australian market has received mixed leads from overseas trading overnight, with Wall Street indices flat, precious metals mixed and oil flat.
Thursday, December 3, 2009
Market Sentiment
Nasdaq 9=1
S&P 500 1=1
Ftse 15=1
Nikkei 37=1
Futures 6=2
Market Sentiment 4
The Australian sharemarket has received flat leads from Wall Street securities overnight, although metals were higher.
In economic news, the Australian Industry Group/Commonwealth Bank will release their Performance of Services Index for November.
The Australian Bureau of Statistics (ABS) issues retail trade data for October.
Wednesday, December 2, 2009
Market Sentiment
Nasdaq 31=2
S&P 500 13=1
Ftse 121=1
Nikkei 227=1
Futures 51=4
Market Sentiment 13
The Australian sharemarket is expected to open in positive territory after gains on Wall Street and European markets overnight.
Tuesday, December 1, 2009
Market Sentiment
Nasdaq 6=1
S&P 500 4=1
Ftse -55=-1
Nikkei 264=1
Futures 11=2
Market Sentiment 6
The Australian sharemarket is expected to open in the red on Tuesday after Wall Street traded flat overnight, and as investors await the Reserve Bank of Australia's (RBA) decision on interest rates due on Tuesday afternoon.