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, February 26, 2010

Market Sentiment

Dow 53=-4
Nasdaq -2=-1
S&P 500 -2=-1
Ftse -65=-1
Nikkei -97=-1
Futures 11=2
Market Sentiment -6

The Australian sharemarket is expected to open in the red following a weaker lead from Wall Street and most major world markets, and mixed commodity prices.

Thursday, February 25, 2010

Market Sentiment

Dow 92=4
Nasdaq 22=2
S&P 500 11=2
Ftse 28=1
Nikkei -153=-1
Futures 22=2
Market Sentiment 10
Australian shares are expected to open higher led by Wall Street and a stronger oil price.
In economic news on Wednesday, the Australian Bureau of Statistics (ABS) releases data on private new capital expenditure in the December quarter, 2009, and expected expenditure through calendar 2010.

Wednesday, February 24, 2010

Market Sentiment

Dow -101=-4
Nasdaq -29=-2
S&P 500 -13=-2
Ftse -37=-1
Nikkei -48=-1
Futures -54=-4
Market Sentiment -14

Australian shares are expected to open lower after Wall Street indices were down overnight, and commodity prices fell.

Tuesday, February 23, 2010

Market Sentiment

Dow -19=-2
Nasdaq -2=-1
S&P 500 -1=-1
Ftse -6=-1
Nikkei 277=1
Futures -2=-2
Market Sentiment -6

Australian shares are expected to open moderately higher after Wall Street indices were flat, metals were lower but oil was higher.

Friday, February 19, 2010

Market Sentiment

Dow 84=4
Nasdaq 15=1
S&P 500 7=1
Ftse 48=1
Nikkei 29=1
Futures 45=2
Market Sentiment 10

US stocks have climbed for a third straight day as investors viewed company results and manufacturing data as evidence the economic rebound will continue.

Investors accentuated the positive news, focusing on improved mid-Atlantic manufacturing data and setting aside a lacklustre outlook from Wal-Mart Stores Inc and a surprising increase in weekly jobless claims.

Thursday, February 18, 2010

Market Sentiment

Dow 40=2
Nasdaq 12=1
S&P 500 5=1
Ftse 33=1
Nikkei 273=1
Futures 12=2
Market Sentiment 8

Australian shares may open higher after encouraging earnings reports and reduced concern about Greece's debt problems helped US and European equities gain.

Wednesday, February 17, 2010

Market Sentiment

Dow 170=4
Nasdaq 31=2
S&P 500 19=2
Ftse 77=1
Nikkei 21=1
Futures 61=4
Market Sentiment 14

Australian shares are expected to open higher after US and European stocks and commodity prices gained overnight.

Tuesday, February 16, 2010

Market Sentiment

Dow holiday
Nasdaq holiday
S&P 500 holiday
Ftse 25=1
Nikkei -79=-1
Futures -4=-2
Market Sentiment -2

The Australian stock market may open slightly lower and trading may be subdued as traders have little direction following public holidays in the US and China.

Monday, February 15, 2010

Market Sentiment

Dow -45 =-2
Nasdaq 6 =1
S&P 500 -3 =-1
Ftse 19=-1
Nikkei 128=1
Futures -18=-2
Market Sentiment -4

The Australian stock market is expected to open lower after equity and commodity markets declined on Friday on reports that China would take further steps to keep its economy from growing too fast.

Friday, February 12, 2010

Market Sentiment

Dow 106 =4
Nasdaq 30 =2
S&P 500 10 =1
Ftse 29=1
Nikkei holiday
Futures 40=2
Market Sentiment 10

The Australian stock market has received positive leads from offshore markets, with Wall Street trading higher and metals and commodities prices firmer.

Thursday, February 11, 2010

Market Sentiment

Dow -20 =-2
Nasdaq -3 =- 1
S&P 500 -2 =-1
Ftse 20=1
Nikkei 31=1
Futures 14=2
Market Sentiment no bias

The Australian stock market has received flat to mixed leads from offshore markets, with Wall Street little changed and metals and energy prices mixed.

Wednesday, February 10, 2010

Market Sentiment

Dow 150 =4
Nasdaq 25 = 1
S&P 500 14 =1
Ftse 20=1
Nikkei -19=-1
Futures 40=2
Market Sentiment 8
The Australian sharemarket is receiving positive leads from offshore markets, with Wall Street trading higher and commodities and metals prices firmer.

Tuesday, February 9, 2010

Market Sentiment

Dow -103 =-4
Nasdaq -15 =- 1
S&P 500 -9 =-1
Ftse 31=1
Nikkei -105=-1
Futures -31=-2
Market Sentiment -8
The Australian sharemarket has received a mixed set of leads from overseas markets, with Wall Street's main indices themselves mixed but oil and metals prices higher.

Monday, February 8, 2010

Market Sentiment

Dow 10 =2
Nasdaq 16 = 1
S&P 500 3 =1
Ftse -78=-1
Nikkei -299=-1
Futures -11=-2
Market Sentiment no bias
The Australian stock market has received a mixed set of leads from overseas markets, with Wall Street's main indices closing slightly higher, and commodities and metals prices weaker.

At 0646 AEDT the on the Sydney Futures Exchange, the March share price index contract was 11 points lower at 4,464.

Friday, February 5, 2010

Market Sentiment

Dow -268 =-4
Nasdaq -65 = -2
S&P 500 -34 =-2
Ftse -114=-1
Nikkei -48=-1
Futures -134=-
Market Sentiment -14

The Australian market is likely to open in the red after US stocks and commodities plunged on investor concerns that the global economy is weaker than expected.

At 0653 AEDT on the Sydney Futures Exchange, the March share price index contract was 112 points lower at 4,480.

Thursday, February 4, 2010

Market Sentiment

Dow -26 =-2
Nasdaq 1 = 1
S&P 500 -6 =-1
Ftse -30=-1
Nikkei 33=1
Futures -27=-2
Market Sentiment -4

The Australian sharemarket is likely to open weaker after US stocks retreated following lower-than-expected growth in the United States' service businesses.

Major commodities also fell overnight.

Wednesday, February 3, 2010

Market Sentiment

Dow 111 = 4
Nasdaq 19 = 1
S&P 500 14 =1
Ftse 36=1
Nikkei 166=1
Futures 54=2
Market Sentiment 10

Australian stocks are expected to open stronger as better news from the housing industry sent US stocks higher overnight

Tuesday, February 2, 2010

Market Sentiment

Dow 118 = 4
Nasdaq 24 = 1
S&P 500 15 =2
Ftse 59=1
Nikkei 7=1
Futures 46=2
Market Sentiment 11

Australian stocks are expected to open higher after Wall Street rebounded from recent losses on strong results from oil giant ExxonMobil and positive data releases.

Monday, February 1, 2010

Market Sentiment

Dow -53 = -4
Nasdaq -32 =-2
S&P 500 -11 =-1
Ftse 43=1
Nikkei -216=-1
Futures -47=-2
Market Sentiment -9

Australian stocks are expected to open lower on Monday following a weak lead from the US and most major world markets.