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, July 30, 2010

Market Sentiment

Dow -31=-2
Nasdaq -13=-1
S&P 500 -5 =-1
Ftse -6=-1
Nikkei - 57=-1
Futures -17=-2
Market Sentiment -8

The Australian sharemarket is likely to open weaker after a fall on Wall Street overnight.

Miners and energy stocks may gain after the price of metals and oil gained overnight.

Thursday, July 29, 2010

Market Sentiment

Dow -40=-2
Nasdaq -24=-1
S&P 500 -8 =-1
Ftse -46=-1
Nikkei 256=1
Futures -23=-2
Market Sentiment -6

The Australian stock market is likely to open weaker, after a fall on Wall Street overnight.

Wednesday, July 28, 2010

Market Sentiment

Dow 12=2
Nasdaq -8=-1
S&P 500 -1 =-1
Ftse 15=1
Nikkei -7=-1
Futures 19=2
Market Sentiment 2

The Australian stock market is likely to open in positive territory after the Dow Jones Industrial Average experienced gains for the fourth consecutive day.

Tuesday, July 27, 2010

Market Sentiment

Dow 101= 4
Nasdaq 27=1
S&P 500 12 =1
Ftse 39=1
Nikkei 73=1
Futures 26=2
Market Sentiment 10

The Australian sharemarket is likely to open higher after the Dow Jones hit a two-month high overnight.

Monday, July 26, 2010

Market Sentiment

Dow 102= 4
Nasdaq 24=2
S&P 500 9 =2
Ftse -1=-1
Nikkei 210=1
Futures 40=2
Market Sentiment 10

The Australian sharemarket is expected to open in the black, on the back of a positive lead from Wall Street.

US stocks extended gains on Friday in cautious trading as the market digested results of stress tests on 91 European banks as well as quarterly earnings of American companies, which were better-than-expected.

Seven banks failed the assessment, according to the Committee of European Banking Supervisors.

Friday, July 23, 2010

Market Sentiment

Dow 202= 4
Nasdaq 59=2
S&P 500 24 =2
Ftse 99=1
Nikkei -58=-1
Futures 64=4
Market Sentiment 12

The Australian stockmarket is expected to open higher, after a positive finish on Wall Street and firmer commodities prices during the offshore session.

Thursday, July 22, 2010

Market Sentiment

Dow -109=- 4
Nasdaq -35=-2
S&P 500 -14 =-1
Ftse 75=1
Nikkei -22=-1
Futures -49=-2
Market Sentiment -9

The Australian share market is expected to open weaker, after major indices on Wall Street backpedalled more than one per cent and the benchmark crude oil contract dipped below $US77 a barrel on the Federal Reserve's bland outlook for the US economy.

Wednesday, July 21, 2010

Market Sentiment

Dow 75= 4
Nasdaq 24=1
S&P 500 12 =1
Ftse -9=-1
Nikkei -108=-1
Futures 41=2
Market Sentiment 6

The Australian sharemarket has received a positive lead from offshore markets, after Wall Street closed higher and commodities prices ended firmer.

Tuesday, July 20, 2010

Market Sentiment

Dow 57= 4
Nasdaq 19=1
S&P 500 6 =1
Ftse -11=-1
Nikkei holiday
Futures -3=-2
Market Sentiment 3

The Australian stock market has received a mixed lead from offshore markets.

Wall Street closed higher and futures contract prices for copper and oil firmed, but gold and silver prices eased.

Monday, July 19, 2010

Market Sentiment

Dow -261= -4
Nasdaq -70= -2
S&P 500 -32 =-2
Ftse -52=-1
Nikkei -277=-1
Futures -79=-4
Market Sentiment -14

The Australian sharemarket has received strongly negative leads from offshore trading on Friday, with key indices substantially lower and key commodities also down heavily

Friday, July 16, 2010

Market Sentiment

Dow -7= -2
Nasdaq -1= -1
S&P 500 1 =1
Ftse -42=-1
Nikkei -110=-1
Futures -8=-2
Market Sentiment -6

The Australian share market has received a modest negative lead from offshore markets as Wall Street traders examined the details of an overhaul of the US financial system and Goldman Sachs' settlement of fraud charges.

Thursday, July 15, 2010

Market Sentiment

Dow 4= 2
Nasdaq 8= 1
S&P 500 -1 =-1
Ftse -18=-1
Nikkei 258=1
Futures -16=-2
Market Sentiment 0

Australian markets have received mixed leads from offshore trading overnight.
In economic news, the Australian Bureau of Statistics releases figures on sales of new motor vehicles for June

Wednesday, July 14, 2010

Market Sentiment

Dow 147= 4
Nasdaq 44= 2
S&P 500 17 = 2
Ftse 104=1
Nikkei -11=-1
Futures 69=4
Market Sentiment 12

The Australian sharemarket is set for a strong opening after Wall Street and European markets surged on encouraging corporate earnings reports in the US.

Tuesday, July 13, 2010

Market Sentiment

Dow 18= 2
Nasdaq 2= 1
S&P 500 1 = 1
Ftse 34=1
Nikkei -37=-1
Futures 16=2
Market Sentiment 6

The Australian sharemarket is likely to open higher as the second-quarter earnings season in the US got off to a positive start.

After Wall Street closed marginally higher, aluminum maker Alcoa beat analysts' expectations and raised its forecast for consumption of the metal this year.

Monday, July 12, 2010

Market Sentiment

Dow 59= 4
Nasdaq 21= 1
S&P 500 8 = 1
Ftse 27=1
Nikkei 50=1
Futures 8=2
Market Sentiment 10

The Australian sharemarket is likely to open the week moderately higher, after it received positive leads from major world markets on Friday.

Friday, July 9, 2010

Market Sentiment

Dow 120= 4
Nasdaq 16= 1
S&P 500 10 = 1
Ftse 91=1
Nikkei 256=1
Futures 28=2
Market Sentiment 10

The Australian market is likely to open higher after another surge on overseas markets overnight. Key indices were higher, as was oil and copper, although silver and gold were lower.

Thursday, July 8, 2010

Market Sentiment

Dow 274= 4
Nasdaq 66= 2
S&P 500 32 = 2
Ftse 50=1
Nikkei -58=-1
Futures 85=4
Market Sentiment 12

The Australian market has received positive leads from overnight trading offshore, with all three key US indices and European markets all recording strong gains. Key commodities - oil and metals - also were higher.

Wednesday, July 7, 2010

Market Sentiment

Dow 57 = 4
Nasdaq 2 = 1
S&P 500 5 = 1
Ftse 141 =1
Nikkei 71 =1
Futures 11 =2
Market Sentiment 10

The Australian sharemarket is expected to open higher after a rebound on Wall Street and on most major world markets overnight.

Tuesday, July 6, 2010

Market Sentiment

Dow Closed
Nasdaq Closed
S&P 500 Closed
Ftse -14=-1
Nikkei 63=1
Futures -13=-2
Market Sentiment -2

The Australian market received mostly flat to negative leads from major Asian and European markets on Monday as Wall Street remained closed for the July 4 Public Holiday in the US.

Monday, July 5, 2010

Market Sentiment

Dow -46=-2
Nasdaq -10=-1
S&P 500 -5=-1
Ftse 32=1
Nikkei 12=1
Futures -30=-2
Market Sentiment -4

The Australian sharemarket is set to open the week lower as Wall Street provided a negative lead with its seventh-straight fall, although losses will likely be limited by firmer base metal prices.

Investors have been worried about the progress of the global economic recovery in recent weeks due to inconsistent economic data, and that trend continued with the latest US employment figures.

Friday, July 2, 2010

Market Sentiment

Dow -41=-2
Nasdaq -8=-1
S&P 500 -3=-1
Ftse 111=-1
Nikkei -191=-1
Futures 23=2
Market Sentiment -4
The Australian sahremarket has received strongly negative leads from offshore trading overnight, with key Wall Street indices all closing lower again, and metals and oil also all down.

Some boost may be expected if the market responds favourably to a compromise between the Federal Government and the mining industry on the resources super profits tax, anticipated to be announced before the market opens on Friday.

Thursday, July 1, 2010

Market Sentiment

Dow -96=-4
Nasdaq -26=-1
S&P 500 -11=-1
Ftse 3=1
Nikkei -188=-1
Futures -30=-2
Market Sentiment -8

The Australian sharemarket is expected to open lower following a weak session in the US.

US stocks extended losses overnight on American unemployment and eurozone debt concerns, while precious and base metals and oil were down.