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, May 31, 2010

Market Sentiment

Dow -122=-4
Nasdaq -21=-1
S&P 500 -14=-1
Ftse -7=-1
Nikkei 123=1
Futures -42=-2
Market Sentiment -8

Australian shares are set to open lower after Wall Street fell on Friday as a downgrade of Spain's credit rating added to worries about the eurozone's financial woes.

Friday, May 28, 2010

Market Sentiment

Dow 285=-4
Nasdaq 82=2
S&P 500 35=2
Ftse 157=1
Nikkei 117=1
Futures 65=4
Market Sentiment 14

US stocks have rallied as investor worry was eased after China refuted a report that it was reviewing its euro-zone bond holdings due to the region's debt crisis.

Thursday's gains marked the largest advance for the S&P 500 on a percentage basis since May 10, although volume was below average.

Thursday, May 27, 2010

Market Sentiment

Dow -69=-4
Nasdaq -15=-1
S&P 500 -6=-1
Ftse 97=1
Nikkei 63=1
Futures -6=-2
Market Sentiment -6

Wall Street has staged yet another late-day reversal to end lower as news suggesting China was reassessing its euro-zone debt holdings pushed investors into profit-taking mode.

The Dow slipped below 10,000, with the late turnaround in stocks showing investor psyche remains fragile, and investors are inclined to sell strength in this volatile rumour-driven market.

Wednesday, May 26, 2010

Market Sentiment

Dow -23=-2
Nasdaq -3=-1
S&P 500 1=1
Ftse -129=-1
Nikkei -298=-1
Futures 65=4
Market Sentiment 0

The Australian sharemarket is expected to open firmer, after Wall Street stemmed heavy losses to close flat on the day.

Tuesday, May 25, 2010

Market Sentiment

Dow -127=-4
Nasdaq -15=-1
S&P 500 -14=-1
Ftse 7=1
Nikkei -26 =-1
Futures -70=-4
Market Sentiment -10

US stocks have ended lower, driving the Dow to its lowest level since February 10, as fresh worries about Europe's banking system weighed on sentiment.

The euro zone's turbulence kept investors wary of taking on risk, after the S&P 500's 4.2 per cent drop last week.

Monday, May 24, 2010

Market Sentiment

Dow 126=4
Nasdaq 25=1
S&P 500 16=2
Ftse -10=-1
Nikkei -246 =-1
Futures 58=4
Market Sentiment 9

The Australian sharemarket has received a mostly positive lead from offshore markets during weekend trading, after Wall Street finished firmer and the benchmark copper futures contract closed higher.

Gold, silver and oil prices were weaker, however.

Thursday, May 20, 2010

Market Sentiment 20th May 2010

Dow -66=-4
Nasdaq -18=-1
S&P 500 -5=-1
Ftse -134= -1
Nikkei -55= -1
Futures 7= 2
Market Sentiment -6

Wednesday, May 19, 2010

Market Sentiment

Dow -115=-4
Nasdaq -37=-2
S&P 500 -16=-2
Ftse 45=1
Nikkei 7 =1
Futures -52=-4
Market Sentiment -10

US stocks sank, driven lower as the strengthening of financial regulation from Wall Street to Frankfurt crushed bank stocks, adding to worries about the sustainability of the global economic recovery.

Tuesday, May 18, 2010

Market Sentiment

Dow 6=2
Nasdaq 7=1
S&P 500 1=1
Ftse -1=-1
Nikkei -227 =-1
Futures 29=2
Market Sentiment 4

The Australian share market is set to rise on Tuesday after Wall Street and some European markets managed small gains despite continuing concerns about the impact of Europe's debt problems on a global economic recovery.

Monday, May 17, 2010

Market Sentiment

Dow -163=-4
Nasdaq -48=-2
S&P 500 -22=-2
Ftse -171=-1
Nikkei -158 =-1
Futures -79=-4
Market Sentiment -14
The Australian stock market is set for a weak opening after European markets and Wall Street suffered sharp falls in their last sessions on continuing concerns about European economies.

Friday, May 14, 2010

Market Sentiment

Dow -114=-4
Nasdaq -31=-2
S&P 500 -14=-1
Ftse 50=1
Nikkei 227 =1
Futures -51=-4
Market Sentiment -9

The Australian sharemarket is expected to open weaker after losses on Wall Street overnight, with a late fall in stocks, and commodities generally lower.

Thursday, May 13, 2010

Market Sentiment

Dow 149=4
Nasdaq 50=2
S&P 500 16=2
Ftse 49=1
Nikkei -17 =-1
Futures 59=4
Market Sentiment 12

NEW YORK - US stocks have capped their best three-day run in 10 months, boosted by technology and industrial shares, after Spain unveiled an austerity plan that reassured investors Europe was addressing its fiscal ills.

Wednesday, May 12, 2010

Market Sentiment

Dow -37=-2
Nasdaq 1=1
S&P 500 -4=-1
Ftse -53=-1
Nikkei -120 =-1
Futures 20=2
Market Sentiment -2

The Australian sharemarket is expected to open moderately higher after a mixed lead from overseas markets overnight.

Tuesday, May 11, 2010

Market Sentiment

Dow 405=4
Nasdaq 109=2
S&P 500 49=2
Ftse 264=1
Nikkei 166 = 1
Futures 58=4
Market Sentiment 14

The Australian sharemarket has received strongly positive leads from offshore trading overnight, as markets rebounded on optimism following the European rescue plan.

Monday, May 10, 2010

Market Sentiment

Dow -140=-4
Nasdaq -54=-2
S&P 500 -17=-2
Ftse -138= -1
Nikkei -331 = -1
Futures -47=-2
Market Sentiment -12

The Australian stock market is expected to open lower, after a plunge on most major markets around the world last week, but weekend moves to stabilise the troubled Greek economy may minimise the damage.

Friday, May 7, 2010

Market Sentiment

Dow -348=-4
Nasdaq -83=-2
S&P 500 -38=-2
Ftse -81= -1
Nikkei -362 = -1
Futures -127=-4
Market Sentiment -14
The Australian stock market is expected to open lower after a negative finish on Wall Street and weaker oil and base metals prices during the offshore session.

Thursday, May 6, 2010

Market News 6th May 2010

Centennial Coal(CEY) Saw special crossing of 39.5m shares (10pc of capital) this morning at $5. Company says it is not aware of the identity of the buyer or buyers of the stock.

Brambles(BXB)Fell after sales fell 1pc in the first three quarters.

National Australia Bank (NAB) down 63c to $26.15: Net profitfell 21.4pc to $2.095bn in the six months ended March 31.

Sims Metal (SGM) up 65c to $21: EBITDA fell 23pc to $214m inthe nine months to March. Says trading conditions for both ferrous and non-ferrous commodities generally improved.

Market Sentiment 6th May 2010

Dow -58 = -4

Nasdaq -21 = -1

S&P 500 -7 = -1

Ftse -69 = -1

Nikkei 0 = 0

Futures -54 = -4

Market Sentiment -11

Tuesday, May 4, 2010

Market Sentiment 4th may 2010

Dow 143= 4

Nasdaq 37 = 2

S&P 500 15 = 2

Ftse 0 = 0

Nikkei 0 = 0

Futures 20 = 2

Market Sentiment 10

Monday, May 3, 2010

Market Sentiment 3rd May 2010

Dow -158= -4

Nasdaq -50 = -2

S&P 500 -20 = -2

Ftse -34 = -1

Nikkei 132 = 1

Futures -62 = -4

Market Sentiment -12