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.
Thursday, September 30, 2010
Market Sentiment
Nasdaq -3 =-1
S&P 500 -3 =-1
Ftse -9 =- 1
Nikkei 64=1
Futures -5 = -2
Market Sentiment -6
NEW YORK - Wall Street took a breather from a month-long rally on Wednesday, with investors bracing for higher volatility going forward as the best quarter in a year nears its end.
Wednesday, September 29, 2010
Market Sentiment
Nasdaq 10 =1
S&P 500 6 =1
Ftse 5 = 1
Nikkei -107=-1
Futures 17 = 2
Market Sentiment 6
The Australian market has received generally positive leads from offshore trading overnight.
In equities, ASX Ltd holds its annual general meeting, Telstra Corporation holds its annual institutional investor briefing, and Sigma Pharmaceuticals Ltd releases first half results.
Tuesday, September 28, 2010
Market Sentiment
Nasdaq -11 =-1
S&P 500 -7 =-1
Ftse -25 =- 1
Nikkei 131=1
Futures -18 = -2
Market Sentiment -6
US stocks have slipped as investors took a break from a four-week rally, but they remained optimistic the advance would resume as a flurry of deals suggested companies were seeing value in the market.
Monday, September 27, 2010
Market Sentiment
Nasdaq 54 = 2
S&P 500 24 = 2
Ftse 51 = 1
Nikkei -94=-1
Futures 57 = 4
Market Sentiment 12
Public Holiday Western Australia only ASX will trade normal hours.
Australian shares are set for a strong start to the week after Wall Street hit its highest point in four months on Friday.
New York's Dow Jones index closed the week nearly two per cent higher as economic data continued to show the prospect of a double dip recession in the world's largest economy is weakening.
Figures showed orders for big-ticket items decreased in August at a slower than expected rate, and traders found comfort in the fact that orders of items such as household appliances rose by a more-than-expected two per cent.
The manufacturing industry is seen as one of the main engines pulling the US economy out of one of its worst recessions in decades.
Friday, September 24, 2010
Market Sentiment
Nasdaq -7 = -1
S&P 500 -9 = -1
Ftse -5 =- 1
Nikkei holiday
Futures -45 = -2
Market Sentiment -9
Australian shares are expected to decline after falls in US equities on a surprise jump in unemployment claims there and more signs of trouble for Europe's economy.
Thursday, September 23, 2010
Market Sentiment
Nasdaq -15 = -1
S&P 500 -6 = -1
Ftse -24 =- 1
Nikkei -36 =-1
Futures -14 = -2
Market Sentiment -8
The Australian market has received mixed leads from offshore trading, with Wall Street's key indices lower, but precious and base metals were higher. Oil fell slightly.
Wednesday, September 22, 2010
Market Sentiment
Nasdaq -6 = -1
S&P 500 -3 = -1
Ftse -23 =- 1
Nikkei -24 =-1
Futures -8 = -2
Market Sentiment -4
US stocks ended flat to lower in an erratic session after the Federal Reserve inched closer to further steps designed to support the recovery.
Stocks initially popped higher but gave back those gains quickly. Investors had hoped that with recent improvements in economic data, the Fed would issue a more upbeat outlook or clarify the measures it would take to stimulate demand.
The central bank nudged the door wider to pumping more money into the economy but kept overnight interest rates unchanged near zero, as expected.
Tuesday, September 21, 2010
Market Sentiment
Nasdaq 40 = 2
S&P 500 17 = 2
Ftse 94 = 1
Nikkei 117 =1
Futures 42 = 2
Market Sentiment 12
The U.S S&P 500 closed at a four-month high on Monday as a long-awaited break above a technical range and a flurry of positive corporate news increased investor optimism.
The break came a day before a Federal Reserve meeting in which the central bank is expected to renew a promise to keep its portfolio from shrinking but is not seen taking new steps to ease monetary policy.
The S&P 500 has struggled to make a sustained move above 1,130, which has been the upper end of a range that has persisted since June. Monday's gains could be a shot in the arm if it sways institutional investors that September's rally of 8.9 percent by the benchmark S&P index has further to go.
Monday, September 20, 2010
Market Sentiment
Nasdaq +12.36 = 1
S&P 500 +0.93 =1
Ftse -31.69 = -1
Nikkei +116 =1
Futures -22 = -2
Market Sentiment 2
Friday, September 17, 2010
Market Sentiment
Nasdaq +1.93 = 1
S&P 500 -0.41 =-1
Ftse -15.42 = -1
Nikkei +71 =1
Futures 1 = 2
Market Sentiment 4
Thursday, September 16, 2010
Market Sentiment
Nasdaq +11.5 = 1
S&P 500 +3.97 =1
Ftse -11.85 = -1
Nikkei +91 =1
Futures 3 = 2
Market Sentiment 6
Wednesday, September 15, 2010
Market Sentiment
Nasdaq 4 = 1
S&P 500 -1 =-1
Ftse 2 = 1
Nikkei -23 =-1
Futures -10 =- 2
Market Sentiment -4
The Australian sharemarket is expected to open lower as Wall Street retreated late in its session on investor concerns about the economic recovery in the US.
Tuesday, September 14, 2010
Market Sentiment
Nasdaq 43 = 2
S&P 500 12 = 2
Ftse 64 = 1
Nikkei 83 =1
Futures 14 = 2
Market Sentiment 12
The Australian sharemarket is expected to open higher as Wall Street extended its rally on company acquisitions and stronger than expected economic data from China.
Monday, September 13, 2010
Market Sentiment
Nasdaq 6 = 1
S&P 500 5 = 1
Ftse 7 = 1
Nikkei 141 =1
Futures 12 = 2
Market Sentiment 8
The Australian sharemarket is expected to open higher in the wake of gains on United States markets and strong Chinese economic data released over the weekend.
Friday, September 10, 2010
Market Sentiment
Nasdaq 7 = 1
S&P 500 6 = 1
Ftse 64 = 1
Nikkei 74 =-1
Futures 19 = 2
Market Sentiment 8
US stocks have risen as stronger-than-expected jobs and trade data helped lift optimism about the economic recovery, although sentiment was fragile as investors fretted over European banks.
Financials, hit hard in the August downturn, were among top gainers as new US claims for unemployment benefits fell to a two-month low, while the trade deficit narrowed sharply in July.
Thursday, September 9, 2010
Market Sentiment
Nasdaq 20 = 1
S&P 500 7 = 1
Ftse 22 = 1
Nikkei -201 = -1
Futures 30 = 2
Market Sentiment 6
The Australian stock market is expected to open firmer on Thursday after Wall Street and European bourses closed higher.
Wednesday, September 8, 2010
Market Sentiment
Nasdaq -25 = -1
S&P 500 -13 = -1
Ftse -31 = -1
Nikkei -75 = -1
Futures -27 = -2
Market Sentiment -10
The Australian stock market has received a negative lead from offshore markets, after Wall Street closed lower and oil prices fell.
Tuesday, September 7, 2010
Market Sentiment
Nasdaq holiday
S&P 500 holiday
Ftse 11=1
Nikkei 187=1
Futures -1=-2
Market Sentiment NIL
The Australian stock market is expected to open flat.
US markets were closed overnight for a public holiday, while European markets finished firmer.
Monday, September 6, 2010
Market Sentiment
Nasdaq 34= 2
S&P 500 14 = 1
Ftse 57=1
Nikkei 51=1
Futures 50=4
Market Sentiment 13
The Australian sharemarket is expected to open higher when trade resumes after a better than expected US jobs report eased concerns about the American economy.
Friday, September 3, 2010
Market Sentiment
Nasdaq 23= 1
S&P 500 10 = 1
Ftse 5=1
Nikkei 136=1
Futures 30=2
Market Sentiment 10
The Australian markets have received positive leads for the third consecutive day, with stronger performances in overseas markets overnight.
Thursday, September 2, 2010
Market Sentiment
Nasdaq 63= 2
S&P 500 31 = 2
Ftse 141=1
Nikkei 103=1
Futures 74=4
Market Sentiment 14
The outlook for the Australian market on Thursday is positive, following strong performances on overseas markets overnight.
Wednesday, September 1, 2010
Market Sentiment
Nasdaq -6=-1
S&P 500 1 =1
Ftse 24=1
Nikkei -325=-1
Futures 41=2
Market Sentiment 4