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, April 30, 2010

Market Sentiment 30th April 2010

Dow 122= 4

Nasdaq 40 = 2

S&P 500 15= 2

Ftse 31 = 1

Nikkei N/A = 0

Futures 39= 2

Market Sentiment 11

Wednesday, April 28, 2010

Market Sentiment 28th April 2010

Dow -213= -4

Nasdaq -51= -2

S&P 500 -28= -2

Ftse - 150 = -1

Nikkei 46 = 1

Futures -90= -4

Market Sentiment -12

Wall Street and European stocks plummeted as Standard & Poor's cut ratings for Portugal & Greece

Tuesday, April 27, 2010

Market Sentiment 27th April 2010

Dow 0.75=2

Nasdaq -7.2=-1

S&P 500 -5.23=-1

Ftse 30= 1

Nikkei 251 = 1

Futures -1=-2

Market Sentiment 0

The market lacked direction following a weak lead from Wall Street. Australian producer price index data showed a rise of 1% in the March quarter, sugesting inflationary pressures are building.

Friday, April 23, 2010

Market Sentiment

Dow 9=2

Nasdaq 14=1

S&P 500 3=1

Ftse -580=- 1

Nikkei -141 = -1

Futures 4=2

Market Sentiment 4

The Australian sharemarket has flat to negative leads from trading offshore overnight, with Wall Street marginally higher, but European and Asian markets generally lower. Precious and base metals were lower in New York, although oil was slightly higher.

Thursday, April 22, 2010

Market Sentiment

Dow 8=2
Nasdaq 4=1
S&P 500 -1=-1
Ftse -60=- 1
Nikkei 189 = 1
Futures -35=-4

Market Sentiment -2

US stocks finished little changed as disappointing outlooks from healthcare companies offset strong earnings from Morgan Stanley and Apple Inc.

Wednesday, April 21, 2010

Market Sentiment

Dow 25=2

Nasdaq 20=1

S&P 500 10=1

Ftse 56= 1

Nikkei -8 =- 1

Futures 44=2

Market Sentiment 6

The Australian sharemarket has received strongly positive leads from offshore trading overnight, with most major markets comfortably higher, including oil and precious and base metals

Tuesday, April 20, 2010

Market Sentiment

Dow 73 = 4
Nasdaq -1 = -1
S&P 500 5 = 1
Ftse -16 = - 1
Nikkei -193 = - 1
Futures 33= 4

Market Sentiment 6

US stocks rose late in trade as investors reassessed the potential damage of the fraud case against Goldman Sachs and earnings optimism grew.

Monday, April 19, 2010

Market Sentiment

Dow -126=-4
Nasdaq -34=-2
S&P 500 -20=-2
Ftse -81=- 1
Nikkei -172 =- 1
Futures -48=-4
Market Sentiment -14
The Australian sharemarket is expected to open lower, on strongly negative leads from offshore markets.

Friday, April 16, 2010

Market Sentiment

Dow 21= 2
Nasdaq 11=1
S&P 500 1=1
Ftse 29= 1
Nikkei 67 = 1
Futures -4=-2
Market Sentiment 4

The Australian stock market has received mixed leads from offshore markets, with Wall Street finishing higher, precious metals prices marginally firmer, but copper and oil ended weaker.

Thursday, April 15, 2010

Market Sentiment

Dow 104= 4
Nasdaq 39=2
S&P 500 13=1
Ftse 34= 1
Nikkei 44 = 1
Futures 32=4
Market Sentiment 13

The Australian sharemarket is expected to open higher, after a positive finish on Wall Street and firmer commodities prides during offshore trading.

Wednesday, April 14, 2010

Market Sentiment

Dow 13= 2
Nasdaq 8=1
S&P 500 1=1
Ftse -16= -1
Nikkei -91 =- 1
Futures 21=2
Market Sentiment 4

The Australian sharemarket is expected to open higher on Wednesday on positive leads from Wall Street, although oil and precious metals fell again in overnight trade.

Tuesday, April 13, 2010

Market Sentiment

Dow 7= 2
Nasdaq 4=1
S&P 500 2=1
Ftse 7= 1
Nikkei 48 = 1
Futures -15=-2
Market Sentiment 4

The Australian share market has received generally positive leads from overnight trading offshore, with Wall Street up marginally, precious metals higher, and European markets flat to higher. Oil and base metal copper were lower, however.

Monday, April 12, 2010

Market Sentiment

Dow 70= 4
Nasdaq 17=1
S&P 500 8=1
Ftse 58= 1
Nikkei 36 = 1
Futures 19= 2
Market Sentiment 10
US stock investors will watch the earnings numbers flow in next week to see how much momentum the rally can get from early profit reports.

The first-quarter figures come as the three major US stock indexes finished a sixth straight week of gains, the best string since the rebound from 12.5-year lows in March 2009, and the Dow briefly popped above 11,000 late on Friday.

Friday, April 9, 2010

Market Sentiment

Dow 30= 2
Nasdaq 6=1
S&P 500 4=1
Ftse -49=- 1
Nikkei 125 =- 1
Futures 27= 2
Market Sentiment 4

Wall Street securities have provided a positive lead to the Australian stock market on Friday, although key commodities all were lower in overnight trade.

Thursday, April 8, 2010

Market Sentiment

Dow -72=-4
Nasdaq -6=-1
S&P 500 -7=-1
Ftse -18=- 1
Nikkei 11 = 1
Futures -24=- 2
Market Sentiment -8

The Australian market has received weak leads from overnight trading offshore, with only precious metals prices ending higher in New York.

Wednesday, April 7, 2010

Market Sentiment

Dow -4=-2
Nasdaq 7=1
S&P 500 2=1
Ftse 35= 1
Nikkei -57 =- 1
Futures 9= 2
Market Sentiment 2

he Australian share market has received generally positive leads from overnight trading overseas, with Wall Street closing flat to higher, gold and oil prices rising, while silver and base metal copper eased.

Tuesday, April 6, 2010

Market Sentiment

Dow 46=2
Nasdaq 27=1
S&P 500 9=1
Ftse 65= 1
Nikkei 53 = 1
Futures 11= 4
Market Sentiment 10

Australian stocks look set for a bright start on Tuesday, with local investors expected to be buoyed by positive US economic data published over the Easter break.

Thursday, April 1, 2010

Market Sentiment

Dow -51=-4
Nasdaq -13=-1
S&P 500 -4=-1
Ftse 7= 1
Nikkei -7 =- 1
Futures 13= 4
Market Sentiment -2
The Australian stock market has received mixed leads from offshore markets, with Wall Street trading lower but gold, oil and silver prices firmer.