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.


Tuesday, August 31, 2010

Market Sentiment

Dow -141=- 4
Nasdaq -34=-2
S&P 500 -16 =-2
Ftse holiday
Nikkei 159=1
Futures -54=-4
Market Sentiment -11

Offshore trading overnight has delivered poor leads to the Australian market on Tuesday. Wall Street reversed Friday's gains, although metals were flat to higher. Oil fell. European markets were lower, too.

Monday, August 30, 2010

Market Sentiment

Dow 164= 4
Nasdaq 35=2
S&P 500 17 =2
Ftse 46=1
Nikkei 85=1
Futures 41=2
Market Sentiment 12
The Australian market has received strong, positive leads from offshore trading on Friday night, boosted by assurances from US Federal Reserve on its preparedness to stimulate the US economy. All key indices were higher, as were the main commodities.

Friday, August 27, 2010

Market Sentiment

Dow -74= -4
Nasdaq -23=-1
S&P 500 -8 =-1
Ftse 46=1
Nikkei 61=1
Futures .36=-2
Market Sentiment -6

The Australian market has received mixed leads from offshore trading overnight.

Wall Street stock indices ended lower, as did precious metals, but base metals and oil were up.

Thursday, August 26, 2010

Market Sentiment

Dow 20= 2
Nasdaq 18=1
S&P 500 3 =1
Ftse 47=-1
Nikkei -150=-1
Futures 15=2
Market Sentiment 4

Prospects are looking up for the Australian sharemarket open, with a late surge on Wall Street ending in a positive finish to the day's trade after earlier losses. Precious metals and oil were higher, too, although base metals were lower.

Wednesday, August 25, 2010

Market Sentiment

Dow -134= -4
Nasdaq -36=-2
S&P 500 -15 =-2
Ftse -79=-1
Nikkei -122=-1
Futures -57=-4
Market Sentiment -14

The Australian sharemarket has received strongly negative leads from offshore trading overnight. Equities markets around the world were down - apart from Shanghai - although precious metals were higher.

Tuesday, August 24, 2010

Market Sentiment

Dow -39= -2
Nasdaq -20=-1
S&P 500 -4 =-1
Ftse 39=1
Nikkei -63=-1
Futures -19=-2
Market Sentiment -6

The Australian sharemarket has received mixed leads from overseas trade overnight, as Wall Streets key indices closed lower, commodities were mixed, and European markets ended higher.

Monday, August 23, 2010

Market Sentiment

Dow -58= -4
Nasdaq 1=1
S&P 500 -4 =-1
Ftse -16=-1
Nikkei -183=-1
Futures -9=-2
Market Sentiment -8
The Australian market has received clearly negative leads for trading on Monday, with key Wall Street indices ending flat to lower on Friday. Commodities broadly were lower, too
The uncertainty of the federal election result will push the Australian dollar and the sharemarket lower when trade resumes on Monday.

"One thing investors don't like is uncertainty," Commonwealth Securities senior analyst Craig James said

Friday, August 20, 2010

Market Sentiment

Dow -144= -4
Nasdaq -37=-2
S&P 500 -19 =-2
Ftse -92=-1
Nikkei 122=1
Futures -67=-4
Market Sentiment -12

The Australian sharemarket will be pressured at the opening following economic concerns once again battered confidence in overnight markets.

Thursday, August 19, 2010

Market Sentiment

Dow 10= 2
Nasdaq 6=1
S&P 500 2 =1
Ftse -48=-1
Nikkei 79=1
Futures -9=-2
Market Sentiment 2

The Australian share market has received mixed to positive leads from offshore trading overnight. US stock indices were higher, Europe equities were mixed, and metals and oil, too, returned mixed results.

In economics news on Thursday, the Australian Bureau of Statistics (ABS) releases average weekly earnings data for May, and on International merchandise imports for July

Wednesday, August 18, 2010

Market Sentiment

Dow 104= 4
Nasdaq 28=2
S&P 500 18 =2
Ftse 74=1
Nikkei -35=-1
Futures 17=2
Market Sentiment 10

The Australian sharemarket has received positive leads from offshore trading overnight, with equities markets generally strong and metals and oil all trading higher, too.
In economics news on Wednesday, the Australian Bureau of Statistics releases its Labour Price Index for June, and Westpac and the Melbourne Institute release their Indices of Economic Activity, also from June.

Tuesday, August 17, 2010

Market Sentiment

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


The Australian sharemarket has received mixed leads from overnight trade offshore. Wall Street indices were flat to marginally higher, whilst metals were higher, but oil was slightly lower.

In economic news, the Reserve Bank of Australia (RBA) publishes the minutes of its board meeting on August 3, and RBA governor Glenn Stevens delivers the 2010 Shann Memorial Lecture in Perth.

In data releases, the Australian Chamber of Commerce and Industry releases its small business survey for the June quarter, and the Melbourne Institute issues its Wages Report for the August quarter.


In equities, more companies deliver financial results. Annual results are expected from Commonwealth Property Office Trust, CFS Retail Property Trust, OneSteel Ltd, UGL Ltd, SAI Global Ltd, Primary Health Care Ltd, Challenger Wine Trust, GWA International Ltd and Sky City Entertainment Group Ltd.

Aston Resources Ltd and Bailey Minerals NL are due to list on the Australian stock exchange, and Minara Resources holds its annual general meeting.

Monday, August 16, 2010

Market Sentiment

Dow -17=-2
Nasdaq -17=-1
S&P 500 -4 =-1
Ftse 9=1
Nikkei 41=1
Futures -50=-4
Market Sentiment -6

The Australian sharemarket has received overall negative leads from offshore trading over the weekend.
Wall Street indices were slightly lower, and most metals and oil also were down. European markets were middling.
In economics news on Monday, the Australian Bureau of Statistics releases data on sales of new motor vehicles for July.
In equities news, earnings season continues apace. Annual results are due from Leighton Holdings Ltd, Lend Lease Group, Centennial Coal Company Ltd, BlueScope Steel Ltd, and Newcrest Mining Ltd.

Friday, August 13, 2010

Market Sentiment

Dow -59=-4
Nasdaq -18=-1
S&P 500 -6 =-1
Ftse 21=1
Nikkei -80=-1
Futures -11=-2
Market Sentiment -8

The Australian stock market has received a mixed lead from offshore markets, with Wall Street closing lower, other markets also generally lower, and oil prices weaker.

However, metals prices ended higher.

Thursday, August 12, 2010

Market Sentiment

Dow -265=-4
Nasdaq -69=-2
S&P 500 -32 =-2
Ftse -131=-1
Nikkei -258=-1
Futures -80=-4
Market Sentiment -14

The Australian market has received strong, negative leads from offshore trading overnight, with key market indices all down heavily, oil dropping and only gold amongst key metals showing a rise.

Wednesday, August 11, 2010

Market Sentiment

Dow -55=-4
Nasdaq -29=-1
S&P 500 -7 =-1
Ftse -34=-1
Nikkei -21=-1
Futures 4=2
Market Sentiment -6

The Australian stockmarket has received negative leads from offshore markets, with Wall Street closing lower and oil prices dropping back below $US81 a barrel. Metals fell, too.

Tuesday, August 10, 2010

Market Sentiment

Dow 45=2
Nasdaq 17=1
S&P 500 6 =1
Ftse 78=1
Nikkei -70=-1
Futures 4=2
Market Sentiment 6

The Australian stockmarket has received a positive lead from offshore markets during the overnight session, with Wall Street closing higher and the benchmark crude oil contract settling above $US81 a barrel.

Monday, August 9, 2010

Market Sentiment

Dow -21=-2
Nasdaq -4=-1
S&P 500 -4 =-1
Ftse -33=-1
Nikkei 12=-1
Futures -14=-2
Market Sentiment -8
The Australian sharemarket has received mixed leads from offshore markets over the weekend, with Wall Street closing lower and oil prices ending weaker, but precious metals were higher.

Friday, August 6, 2010

Market Sentiment

Dow -5=-2
Nasdaq -11=-1
S&P 500 -1 =-1
Ftse -20=-1
Nikkei 165=1
Futures 28=2
Market Sentiment 4
The Australian share market is set for a flat opening after a surprising rise in jobless claims in the US sent Wall Street moderately lower.

Thursday, August 5, 2010

Market Sentiment

Dow 44=2
Nasdaq 20=1
S&P 500 7 =1
Ftse -10=-1
Nikkei -205=-1
Futures 28=2
Market Sentiment 4

The Australian share market is set to open higher after Wall Street returned to gains on better-than-expected corporate earnings and encouraging economic data.

Wednesday, August 4, 2010

Market Sentiment

Dow -38=-2
Nasdaq -12=-1
S&P 500 -5 =-1
Ftse -1=-1
Nikkei 124=1
Futures -4=-2
Market Sentiment -6

The Australian sharemarket has received a weak lead from Wall Street where disappointing earnings and economic data put an end to the recent rally.

Most base metals posted moderate gains while energy prices rose.

Tuesday, August 3, 2010

Market Sentiment

Dow 208=4
Nasdaq 41=2
S&P 500 24 =2
Ftse 139=1
Nikkei 33=1
Futures 64=4
Market Sentiment 14

The Australian sharemarket has received unambiguous, positive leads from offshore trading overnight, with all three key US indices up strongly, as well as equities markets in Europe and Asia. Precious and base metals were higher in New York, and benchmark oil broke the $US81 ($A8.68) barrier.

Monday, August 2, 2010

Market Sentiment

Dow -1=-2
Nasdaq 3=1
S&P 500 1 =1
Ftse -56=-1
Nikkei - 159=-1
Futures 7=2
Market Sentiment 0

The Australian sharemarket is expected begin the week with a slightly stronger opening on the back of a flat lead from Wall Street.