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.
Wednesday, March 31, 2010
Market Sentiment
Nasdaq 6=1
S&P 500 1=1
Ftse -38=-1
Nikkei 111 = 1
Futures -1=-2
Market Sentiment 2
The Australian stock market has received mostly positive leads from offshore markets, with Wall Street trading higher and copper and oil prices firmer, although gold and silver futures prices were weaker.
Tuesday, March 30, 2010
Market Sentiment
Nasdaq 9=1
S&P 500 7=1
Ftse 8=1
Nikkei -10 =- 1
Futures 16=2
Market Sentiment 6
The Australian sharemarket has received positive leads from offshore markets, with Wall Street higher in late afternoon trade, metals prices firmer and oil prices higher, too.
Monday, March 29, 2010
Market Sentiment
Nasdaq -2=-1
S&P 500 1=1
Ftse -25=-1
Nikkei 168 = 1
Futures -2=-2
Market Sentiment no bias
The Australian stock market has received mostly positive leads from offshore markets, with Wall Street finishing higher and precious and base metals prices firmer, although oil prices were weaker.
Friday, March 26, 2010
Market Sentiment
Nasdaq -1=-1
S&P 500 -2=-1
Ftse 50=1
Nikkei 14 = 1
Futures -2=-2
Market Sentiment no bias
The Australian sharemarket recovered some earlier losses in afternoon trade, but has unofficially ended the day flat, after a downgrade of Portugal’s debt and ongoing concerns over a bailout plan for Greece dampened trade overnight.
Thursday, March 25, 2010
Market Sentiment
Nasdaq -16=-1
S&P 500 -6=-1
Ftse 4=1
Nikkei 41 = 1
Futures -13=-2
Market Sentiment -6
The Australian market has received negative leads from overnight trading offshore, with Wall Street indices ending lower, along with oil and metals.
Wednesday, March 24, 2010
Market Sentiment
Nasdaq 20=1
S&P 500 8=1
Ftse 29=1
Nikkei -50 = -1
Futures 35=2
Market Sentiment 8
The Australian share market is expected to open stronger after gains on Wall Street and with higher precious metal and oil prices.
Tuesday, March 23, 2010
Market Sentiment
Nasdaq 21=1
S&P 500 6=1
Ftse -6=-1
Nikkei holiday
Futures 26=2
Market Sentiment 5
The Australian sharemarket has received positive leads from overseas, with Wall Street indices and the oil price up. Metals prices were lower, however.
Monday, March 22, 2010
Market Sentiment
Nasdaq -17=-1
S&P 500 -6=-1
Ftse 7=1
Nikkei 81=1
Futures -19=-2
Market Sentiment -4
The Australian share market has received negative leads from overseas, with Wall Street indices, metals and oil all closing lower.
Friday, March 19, 2010
Market Sentiment
Nasdaq 2=1
S&P 500 -1=-1
Ftse -2=-1
Nikkei 103=-1
Futures 8=2
Market Sentiment 2
The Australian share market has received mixed leads from overseas, with Wall Street indices flat to mixed, gold higher, but silver, copper and oil all lower.
Thursday, March 18, 2010
Market Sentiment
Nasdaq 11=1
S&P 500 7=1
Ftse 27=1
Nikkei 125=1
Futures 18=2
Market Sentiment 8
The Australian market is expected to open higher, on positive leads from overseas securities and commodities trading.
Wednesday, March 17, 2010
Market Sentiment
Nasdaq 16=1
S&P 500 9=1
Ftse 27=1
Nikkei -30=-1
Futures 35=2
Market Sentiment 6
The Australian market has received positive leads from overseas, with securities spiking higher on Wall Street after the Federal Reserve kept interest rates on hold and signalled they would stay down for some time yet. Commodities were higher, too.
Tuesday, March 16, 2010
Market Sentiment
Nasdaq -5=-1
S&P 500 1=1
Ftse 8=1
Nikkei 1=1
Futures -5=-2
Market Sentiment 2
The Australian market has received flat to mixed leads from overseas trading, with Wall Street flat, oil and copper down, but precious metals ended higher.
Monday, March 15, 2010
Market Sentiment
Nasdaq -1=-1
S&P 500 -1=-1
Ftse 8=1
Nikkei 86=1
Futures 1=2
Market Sentiment 4
The Australian sharemarket is expected to begin the week on a steady note with world markets maintaining their slow rise as concerns about recession and sovereign debts dissipate.
Wall Street ended narrowly higher on Friday, the fourth consecutive positive session.
Economic data showed retail sales unexpectedly rose for the second consecutive month in February, but investors were also dealt some bad news with a survey showing consumer sentiment fell in March.
Friday, March 12, 2010
Market Sentiment
Nasdaq 10=1
S&P 500 5=1
Ftse -23=-1
Nikkei 101=1
Futures 9=2
Market Sentiment 6
The Australian market has received flat to positive leads from overseas markets overnight, with Wall Street edging into positive territory in late afternoon trade, and precious and base metals higher, although oil was marginally virtually flat.
Thursday, March 11, 2010
Market Sentiment
Nasdaq 18=1
S&P 500 5=1
Ftse 38=1
Nikkei -4=-1
Futures 20=2
Market Sentiment 6
The Australian stock market has received a mixed set of leads from offshore trading, with Wall Street and crude oil prices higher afternoon trade, but precious and base metals prices were weaker.
Wednesday, March 10, 2010
Market Sentiment
Nasdaq 8=1
S&P 500 2=1
Ftse -4=-1
Nikkei -18=-1
Futures 9=2
Market Sentiment 4
The Australian stock market is receiving a mostly positive set of leads from offshore trading, with Wall Street and base metals prices higher in afternoon trade.
Tuesday, March 9, 2010
Market Sentiment
Nasdaq 6=1
S&P 500 -1=-1
Ftse 7=1
Nikkei 217=1
Futures 7=2
Market Sentiment 2
The Australian sharemarket has received a mixed set of leads from offshore trading, with Wall Street and oil prices flat in afternoon trade but metals prices weaker.
Monday, March 8, 2010
Market Sentiment
Nasdaq 34=2
S&P 500 16=2
Ftse 73=1
Nikkei 223=1
Futures 65=4
Market Sentiment 14
The Australian sharemarket has received positive leads from offshore markets, with Wall Street closing higher and commodities prices firmer.
Friday, March 5, 2010
Market Sentiment
Nasdaq 12=1
S&P 500 4=1
Ftse -6=-1
Nikkei -107=-1
Futures 21=2
Market Sentiment 4
The Australian sharemarket is expected to open higher with Wall Street posting modest gains in late afternoon trade amid negative home sales data and positive news on retail sales and unemployment benefits.
Thursday, March 4, 2010
Market Sentiment
Nasdaq -1=-1
S&P 500 1=1
Ftse 49=1
Nikkei 31=1
Futures 8=2
Market Sentiment 2
The Australian sharemarket is expected to open flat as Wall Street edged into the red just ahead of its close, despite earlier gains based on a positive report on the US services sector.
Wednesday, March 3, 2010
Market Sentiment
Nasdaq 7=1
S&P 500 3=1
Ftse 78=1
Nikkei 50=1
Futures 24=2
Market Sentiment 8
The Australian sharemarket is expected to open higher on Wednesday with Wall Street boosted by corporate takeover activity.
Tuesday, March 2, 2010
Market Sentiment
Nasdaq 35=2
S&P 500 11=1
Ftse 51=1
Nikkei 46=1
Futures 24=2
Market Sentiment 11
The Australian sharemarket is expected to open in positive territory following strong leads from Wall Street and major world markets overnight.
Monday, March 1, 2010
Market Sentiment
Nasdaq 4=1
S&P 500 2=1
Ftse 76=1
Nikkei 24=1
Futures 16=2
Market Sentiment 8
Australian shares are likely to open moderately higher after a better-than-expected February reporting season and as Wall Street and world markets edged up on Friday.
However, investors will be cautious as the Reserve Bank of Australia (RBA) is widely tipped to lift the official interest rate after its monthly board meeting on Tuesday, while the latest economic growth figures will be released on Wednesday.