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, October 29, 2010

Market Sentiment

Dow -12=-2
Nasdaq 4 =1
S&P 500 1=1
Ftse 32 =1
Nikkei -21=-1
Futures -6 = -2
Market Sentiment -2
The Australian sharemarket has received mixed leads from offshore trading overnight, with Wall Street recovering after see-sawing throughout the day. European markets were higher, as were precious and base metals, and oil.

Thursday, October 28, 2010

Market Sentiment

Dow -43 =-2
Nasdaq 6 =1
S&P 500 -3=-1
Ftse -61 =-1
Nikkei 10=1
Futures 13 = 2
Market Sentiment 0
The Australian market has received negative leads from offshore trading overnight. All key equities indices were lower, as were precious and base metals and oil.

Wednesday, October 27, 2010

Market Sentiment

Dow 5 =2
Nasdaq 6 =1
S&P 500 1= 1
Ftse -45 =-1
Nikkei -24=-1
Futures -4 = -2
Market Sentiment 0

NEW YORK - Data showed the US economic recovery is still fragile, with consumer confidence remaining weak and home prices falling again after gaining earlier in the year.

The reports reinforced the belief that the US Federal Reserve will embark on another round of monetary policy stimulus to support the economic recovery next week.

US consumer confidence rose slightly in October but remained near historically low levels as concerns about the labour market persisted.

Tuesday, October 26, 2010

Market Sentiment

Dow 31 =2
Nasdaq 11 =1
S&P 500 2= 1
Ftse 11 =1
Nikkei -26=-1
Futures -18 = -2
Market Sentiment 2

The Australian dollar took a breather as the local currency settled back after a surge which took it to within sight of parity against the US dollar for the second time.

The Australian dollar was firm at 99.00 US cents, consolidating after jumping about a cent on Monday, with the currency surging to a 10-day high of 99.75 cents in offshore trade.

Sunday, October 24, 2010

Market Sentiment for Monday 25th October

Dow -14 =-2
Nasdaq 20 =1
S&P 500 3= 1
Ftse -16 =-1
Nikkei 50=1
Futures -4 = -2
Market Sentiment -2

Friday, October 22, 2010

Market Sentiment

Dow 39 =2
Nasdaq 2 =1
S&P 500 2= 1
Ftse 29 =1
Nikkei -5=-1
Futures 4 = 2
Market Sentiment 6

The Australian sharemarket has received mixed leads from offshore trading overnight, with European equities markets strong, while Wall Street was flat to mixed.

Commodities were lower and the US dollar rose.

Thursday, October 21, 2010

Market Sentiment

Dow 129 =4
Nasdaq 20 =1
S&P 500 14= 1
Ftse 25 =1
Nikkei -158=-1
Futures 24 = 2
Market Sentiment 8

US stocks bounced back on strong corporate earnings and raised outlooks, while a decline in the US dollar lifted shares of materials companies.

Equities and the greenback have had an inverse relationship lately, with the weaker dollar boosting companies tied to resources or with major operations overseas.

Wednesday, October 20, 2010

Market Sentiment

Dow -165 =-4
Nasdaq -44 =-2
S&P 500 -19=-2
Ftse -39 =-1
Nikkei 41=1
Futures -36 = -2
Market Sentiment -10

The Australian dollar ended flat on Tuesday due to the strength of the US dollar knocking down any gains it made, after having traded through a range of almost one US cent during the previous 24 hours.

Tuesday, October 19, 2010

Market Sentiment

Dow 81 =4
Nasdaq 12 =1
S&P 500 9=1
Ftse 39 =1
Nikkei -2=-1
Futures 41 = 2
Market Sentiment 8

The Australian sharemarket has received positive leads from offshore trade overnight, with European and US markets higher, including equities and commodities.

Monday, October 18, 2010

Market Sentiment

Dow -32 =-2
Nasdaq 33 =2
S&P 500 2=1
Ftse -24 =-1
Nikkei -83=-1
Futures -16 = -2
Market Sentiment -3

The Australian market has received mixed leads from offshore trading over the weekend.

In the US, some Wall Street markets closed lower as investors fretted over what impact the forced halt to foreclosures will have on banks, while others, such as the Nasdaq, surged on favourable earnings from Google Ltd.

European shares closed lower.

Investors will be closely following how the strength of the Australian dollar effects the local sharemarket, after it pushed past parity with the US currency at 2318 AEDT Friday before falling back below the $US1 mark.

Friday, October 15, 2010

Market Sentiment

Dow -2 =-2
Nasdaq -6 =-1
S&P 500 -4=-1
Ftse -20 =-1
Nikkei 180=1
Futures -10 = -2
Market Sentiment -6

Bank shares led the Dow and the S&P 500 lower, reflecting investors' fears of how a nationwide probe into the mortgage industry's foreclosure practices might affect earnings.

Thursday, October 14, 2010

Market Sentiment

Dow 76 =4
Nasdaq 23 =1
S&P 500 8=1
Ftse 86 =1
Nikkei 15=1
Futures 30 = 2
Market Sentiment 10

The Australian sharemarket has received strongly positive leads from offshore trading overnight, with all key overseas markets significantly higher, including equities and commodities.

The Australian dollar hit a new post float high shortly after 0500 AEDT at 99.35 US cents.

Wednesday, October 13, 2010

Market Sentiment

Dow 26 =2
Nasdaq 17 =1
S&P 500 7=1
Ftse -11 =-1
Nikkei -200=-1
Futures 40 = 2
Market Sentiment 4

The Australian sharemarket slumped at the close yesterday, as midday losses widened considerably following a lacklustre lead from Wall St.

Tuesday, October 12, 2010

Market Sentiment

Dow 4 =2
Nasdaq 1 =1
S&P 500 -1=-1
Ftse 15 =1
Nikkei holiday
Futures 3 = 2
Market Sentiment 5

The Australian sharemarket closed at a five-month high yesterday, after the benchmark index pierced 4,700 in morning trade for the first time since May 5, as miners, banks and energy companies rallied.

Monday, October 11, 2010

Market Sentiment

Dow 58 =4
Nasdaq 18 =1
S&P 500 7=1
Ftse -5 =-1
Nikkei -96=-1
Futures 22 = 2
Market Sentiment 6

The Australian sharemarket is expected to open firmer on Monday after Wall Street closed higher following weak American jobs data raised the prospect of more stimulus from the US central bank.

Friday, October 8, 2010

Market Sentiment

Dow -19 =-2
Nasdaq 3 =1
S&P 500 - 2 =-1
Ftse -19 =-1
Nikkei -7=-1
Futures -17 =- 2
Market Sentiment -5
The Australian stockmarket is expected to open lower after Wall Street ended slightly weaker ahead of a key employment report in the US.

Thursday, October 7, 2010

Market Sentiment

Dow 23 = 2
Nasdaq -22 =-1
S&P 500 -1 =-1
Ftse 47 =1
Nikkei 173=1
Futures 6 = 2
Market Sentiment 4

The Australian stockmarket is expected to open slightly higher despite US equities ending mixed, as a disappointing report on the jobs market renewed concern about the economy.

Wednesday, October 6, 2010

Market Sentiment

Dow 193 = 4
Nasdaq 55 =2
S&P 500 24 =2
Ftse 80 = 1
Nikkei 138=1
Futures 63 = 4
Market Sentiment 14

The Australian sharemarket is expected to open higher after US equities surged to their highest level in five months Tuesday after activity in American services companies powered ahead in September.

Tuesday, October 5, 2010

Market Sentiment

Dow -78 =- 4
Nasdaq -26 =-1
S&P 500 -9 =-1
Ftse -37 =- 1
Nikkei -23=-1
Futures =24 = -2
Market Sentiment -10


The Australian stock market is expected to open lower on Tuesday after US equities closed down ahead of a week with key economic data and the start of the earnings reporting season.

Friday, October 1, 2010

Market Sentiment

Dow -47 =- 2
Nasdaq -8 =-1
S&P 500 -4 =-1
Ftse -21 =- 1
Nikkei -190=-1
Futures 11 = 2
Market Sentiment -4
NEW YORK - Wall Street wrapped up its best quarter in a year on Thursday with the S&P and Nasdaq logging in the biggest monthly gains since April 2009, as data showed the economy isn't in such bad shape.

Defying September's track record as the worst month for stocks, the S&P 500 was up 8.8 per cent. In the third quarter, the index gained 10.7 per cent, which was the best in a year.