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, November 30, 2010
Market Sentiment
Nasdaq -9 = -1
S&P 500 -2 = -1
Ftse -118 = -1
Nikkei 86 = 1
Futures 5 = 2
Market Sentiment -2
The Australian market has received negative leads from offshore trading overnight, driven by concern about weakness in the euro zone and instability in Korea.
Monday, November 29, 2010
Market Sentiment
Nasdaq -9 = -1
S&P 500 -9 = -1
Ftse -30 = -1
Nikkei -40 = -1
Futures -21 = -2
Market Sentiment -10
he Australian sharemarket has received mixed, flat leads from offshore trade over the weekend, with US markets subdued following the Thanksgiving holiday on Thursday.
Friday, November 26, 2010
Market Sentiment
Nasdaq “
S&P 500 “
Ftse 42 =1
Nikkei 50 = 1
Futures -4 = -2
Market Sentiment 0
The Australian market has received positive leads from European trading overnight, but the most powerful influence on the day's trade, Wall Street, was closed for Thanksgiving.
Thursday, November 25, 2010
Market Sentiment
Nasdaq 48 = 2
S&P 500 18= 2
Ftse 76 =1
Nikkei -85 = -1
Futures 38 = 2
Market Sentiment 10
The Australian market is receiving overwhelmingly positive leads from offshore trading overnight.
Wednesday, November 24, 2010
Market Sentiment
Nasdaq -37 = -2
S&P 500 -17=- 2
Ftse -100 =-1
Nikkei holiday
Futures -51 =-4
Market Sentiment -13
The Australian market is receiving strongly negative leads from offshore trading overnight, with all significant equities indices down sharply, along with base metals. Precious metals were higher, however, as was oil.
Tuesday, November 23, 2010
Market Sentiment
Nasdaq 14 = 1
S&P 500 -2=- 1
Ftse -52 =-1
Nikkei 93=1
Futures -27 =-2
Market Sentiment -4
The Australian market is receiving mixed to negative leads from offshore trading overnight, with equities markets generally lower, while precious metals were higher. Oil fell.
Monday, November 22, 2010
Market Sentiment
Nasdaq 4 = 1
S&P 500 3= 1
Ftse -36 =-1
Nikkei 9=1
Futures 6 =2
Market Sentiment 6
The Australian market has received flat to mixed leads from offshore trading over the weekend, as it awaits the public float of Queensland freight railways, QR National.
Friday, November 19, 2010
Market Sentiment
Nasdaq 38 = 2
S&P 500 18= 2
Ftse 76 =1
Nikkei 202=1
Futures 30 =2
Market Sentiment 12
The Australian sharemarket is receiving strong, positive leads as offshore trading continues on Friday morning, with Wall Street's and Europe's key indices substantially higher, as are precious and base metals and oil.
Thursday, November 18, 2010
Market Sentiment
Nasdaq 6 = 1
S&P 500 1= 1
Ftse 11 =1
Nikkei 15=1
Futures -1 =-2
Market Sentiment 0
The Australian sharemarket is receiving mixed leads from offshore trading overnight. European markets were clearly higher while Wall St is flat in afternoon trade. Precious metals were mixed, and oil was down.
Wednesday, November 17, 2010
Market Sentiment
Nasdaq -44 =-2
S&P 500 -19=-2
Ftse -139 =-1
Nikkei -30=-1
Futures -61 =-4
Market Sentiment -14
The Australian sharemarket is receiving strongly negative leads from offshore trading overnight, with all key indices and commodities significantly lower.
Tuesday, November 16, 2010
Market Sentiment
Nasdaq -4 =-1
S&P 500 -1=-1
Ftse 24 =1
Nikkei 103=1
Futures -3 =- 2
Market Sentiment 0
The Australian market is receiving generally positive leads from offshore trading overnight, with Wall Street indices higher, along with precious metals. Oil was flat.
Monday, November 15, 2010
Market Sentiment
Nasdaq -13 =-1
S&P 500 -14=-1
Ftse -18 =-1
Nikkei -137=-1
Futures -19 =- 2
Market Sentiment -10
Australian markets are expected to open lower, after world markets sold off on concerns the Chinese government may slow the pace of its economic growth.
Friday, November 12, 2010
Market Sentiment
Nasdaq -23 =-1
S&P 500 -5=-1
Ftse -2 =-1
Nikkei 31=1
Futures -8 =- 2
Market Sentiment -8
The Australian sharemarket is expected to open weaker, as Wall Street fell after a weak outlook from technology giant Cisco weighed on investor concerns about future profits.
Thursday, November 11, 2010
Market Sentiment
Nasdaq 16 =1
S&P 500 5=1
Ftse .58 =-1
Nikkei 136=1
Futures 30 = 2
Market Sentiment 6
The Australian sharemarket ais expected to open firmer, as US equities rebound in afternoon trade on signs of a slow improvement in the American labour market.
In economics news on Thursday, the Australian Bureau of Statistics releases labour force data for October 2010.
The Melbourne Institute releases its survey of consumer inflationary expectations for November.
Wednesday, November 10, 2010
Market Sentiment
Nasdaq -17 =-1
S&P 500 -10=-1
Ftse 25 =1
Nikkei -38=-1
Futures -12 =- 2
Market Sentiment -8
the Australian sharemarket has received mixed leads from offshore, with healthy gains in European equities and in precious and base metals, while Wall St was lower, as was oil in early afternoon trading.
Tuesday, November 9, 2010
Market Sentiment
Nasdaq 1 =1
S&P 500 -3=-1
Ftse -25 =-1
Nikkei 107=1
Futures -23 =- 2
Market Sentiment -4
The Australian market is receiving mixed leads from offshore trading overnight. Equities were flat to lower, whilst precious metals were higher, with gold hitting a record high. Base metals were flat, as was oil before rising in late trade.
Monday, November 8, 2010
Market Sentiment
Nasdaq 2 =1
S&P 500 5=1
Ftse 13 =1
Nikkei 267=1
Futures 18 = 2
Market Sentiment 8
The Australian market has received generally positive leads from offshore trading over the weekend. Equities markets were higher in both the US and Europe, as were precious and base metals and oil.
Friday, November 5, 2010
Market Sentiment
Nasdaq 37 =2
S&P 500 23 =2
Ftse 113 = 1
Nikkei 0 = 0
Futures 74 = 4
Market Sentiment 13
Thursday, November 4, 2010
Market Sentiment
Nasdaq 6.75 =1
S&P 500 4.39 =1
Ftse -8.46 =-1
Nikkei 0 = 0
Futures 4.3 = 2
Market Sentiment 5
Wednesday, November 3, 2010
Market Sentiment
Nasdaq 28 =1
S&P 500 9 =1
Ftse 62 =1
Nikkei 5 = 1
Futures 13 = 2
Market Sentiment 10