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, December 31, 2010
Market Sentiment
Nasdaq -4 = -1
S&P 500 -2 = -1
Ftse -25 = -1
Nikkei -115 = -1
Futures -14=- 2
Market Sentiment -8
The Australian sharemarket is expected to open lower following a soft lead from Wall Street.
In economic news on Friday, the Reserve Bank of Australia is scheduled to release financial aggregates date for November.
Thursday, December 30, 2010
Market Sentiment
Nasdaq 4 = 1
S&P 500 1 = 1
Ftse -13 = -1
Nikkei 52 = 1
Futures -1=- 2
Market Sentiment 2
The Australian dollar was higher on Thursday morning, after hitting a record post-float high in overnight trade.
The local unit has been pushed higher in recent days by strong commodity prices.
At 0700 AEDT on Thursday, the Australian dollar was trading at 101.76 US cents, up from 101.14 cents at 1700 AEDT on Wednesday.
Wednesday, December 29, 2010
Market Sentiment
Nasdaq -4 = -1
S&P 500 1 = 1
Ftse 13 = 1
Nikkei -63 = -1
Futures -1=- 2
Market Sentiment 0
The Australian market is expected to open marginally higher following a subdued lead from Wall Street, while the Australian dollar continues to appreciate against the US currency and the euro.
Friday, December 24, 2010
Market Sentiment
Nasdaq -6 = -1
S&P 500 -2 = -1
Ftse 13 = 1
Nikkei -24 = -1
Futures -18=- 2
Market Sentiment -2
The Australian market is forecast to open lower following mixed leads from offshore markets, while the Australian dollar remains above parity with the US currency.
Thursday, December 23, 2010
Market Sentiment
Nasdaq 4 = 1
S&P 500 4 = 1
Ftse 32 = 1
Nikkei -24 = -1
Futures 17= 2
Market Sentiment 6
The Australian market is receiving generally positive leads from equities trading in offshore markets overnight, although precious metals and copper were lower. Oil was higher.
Wednesday, December 22, 2010
Market Sentiment
Nasdaq 18 = 1
S&P 500 8 = 1
Ftse 60 = 1
Nikkei 154 = 1
Futures 14= 2
Market Sentiment 10
The Australian sharemarket is receiving strong, positive leads from offshore trading overnight.
In economics news on Wednesday, Westpac and the Melbourne Institute release their Indexes of Economic Activity.
Tuesday, December 21, 2010
Market Sentiment
Nasdaq 7 = 1
S&P 500 3 = 1
Ftse 20 = 1
Nikkei -87 = -1
Futures 24= 2
Market Sentiment 2
The Australian sharemarket has received positive leads from overnight trading offshore, after earlier concerns about stability on the Korean peninsula appeared to have eased.
Monday, December 20, 2010
Market Sentiment
Nasdaq 6 = 1
S&P 500 1 = 1
Ftse -9 =- 1
Nikkei -7 = -1
Futures 8= 2
Market Sentiment 0
The Australian sharemarket has received mixed leads from offshore trading, with equities markets mixed, while oil and metals were higher.
On the ASX 24 at 0618 AEDT, the December share price index futures contract was eight points higher at 4,767.
There is no economics or equities news scheduled on Monday.
Thursday, December 16, 2010
Market Sentiment
Nasdaq 11 =- 1
S&P 500 -6 =- 1
Ftse -9 =- 1
Nikkei -7 = -1
Futures -13=- 2
Market Sentiment -8
The Australian market is receiving mixed leads from offshore trading overnight, with Wall Street indices and commodities mixed and European and Asian equities markets generally lower.
Wednesday, December 15, 2010
Market Sentiment
Nasdaq 3 = 1
S&P 500 1 = 1
Ftse 30 = 1
Nikkei 23 = 1
Futures 3= 2
Market Sentiment 8
The Australian market is receiving positive leads from offshore trading overnight.
Tuesday, December 14, 2010
Market Sentiment
Nasdaq -13 = -1
S&P 500 1 = 1
Ftse 48 = 1
Nikkei 82 = 1
Futures 11= 2
Market Sentiment 6
The Australian market is receiving strongly positive leads from offshore trading overnight, with all key securities indices higher, along with precious and base metals and oil.
Monday, December 13, 2010
Market Sentiment
Nasdaq 21 = 1
S&P 500 7 = 1
Ftse 5 = 1
Nikkei -74 = 1
Futures 12= 2
Market Sentiment 6
The Australian share market is tipped to open modestly higher on Monday on the back of a positive US lead but wariness surrounding the impact of further monetary tightening in China may result in a cautious start to trading.
Friday, December 10, 2010
Market Sentiment
Nasdaq 8 = 1
S&P 500 5 = 1
Ftse 13 = 1
Nikkei 54 = 1
Futures -7= -2
Market Sentiment 0
The Australian market is receiving uncertain leads from offshore trading overnight, with equities markets and commodities both turning in mixed performances.
Thursday, December 9, 2010
Market Sentiment
Nasdaq 11 = 1
S&P 500 5 = 1
Ftse -14 =- 1
Nikkei 91 = 1
Futures 19= 2
Market Sentiment 6
The Australian sharemarket has received mixed leads from offshore trading overnight, with securities indices mixed, whilst precious metals and oil were lower. The US dollar rose.
Wednesday, December 8, 2010
Market Sentiment
Nasdaq 4 = 1
S&P 500 1 = 1
Ftse 38 = 1
Nikkei -26 =- 1
Futures 2= 2
Market Sentiment 2
The Australian market is receiving positive leads from offshore trading overnight.
In economics news, Reserve Bank of Australia assistant governor (economic) Philip Lowe addresses the Australian Business Economists Annual Forecasting Conference and Dinner.
The Australian Bureau of Statistics releases data on housing finance for October, and the Australian Office of Financial Management conducts a tender process for the issue of $650 million in January 2018 bonds.
Tuesday, December 7, 2010
Market Sentiment
Nasdaq 3 = 1
S&P 500 -2 = -1
Ftse 25 = 1
Nikkei -11 =- 1
Futures -2=- 2
Market Sentiment -4
The Australian market is expected to open slightly higher after receiving subdued leads from offshore trading.
In economics news on Tuesday, the Reserve Bank of Australia holds its board meeting on monetary policy.
All 15 economists surveyed by AAP have forecast the central bank to leave the overnight cash rate at 4.75 per cent.
Monday, December 6, 2010
Market Sentiment
Nasdaq 12 = 1
S&P 500 3 = 1
Ftse -22 = -1
Nikkei 10 = 1
Futures 4= 2
Market Sentiment 6
The Australian market is tipped to open modestly higher with mining stocks benefiting from a higher Australian dollar and stronger commodity prices.
The December share price index futures contract is pointing to a four point rise, or 0.08 per cent, when trading opens on Monday and CommSec's chief economist Craig James said this was about right.
Mr James tips the local bourse to open between five and 10 points higher with globally-focused companies being impacted from a stronger Australian dollar which traded over US99.31 cents on Friday.
"It's bad news for Billabong, Westfield, CSL, Cochlear," he said.
"But the mining and energy shares should benefit from higher commodity prices."
Friday, December 3, 2010
Market Sentiment
Nasdaq 15 = 2
S&P 500 30 = 2
Ftse 125 = 1
Nikkei 180 = 1
Futures 45= 2
Market Sentiment 12
The Australian market is receiving strongly positive leads from offshore trading overnight, with all key securities indices higher along with most commodities, supported by positive data releases.
Thursday, December 2, 2010
Market Sentiment
Nasdaq 51 = 2
S&P 500 26 = 2
Ftse 114 = 1
Nikkei 51 = 1
Futures 62 = 4
Market Sentiment 14
NEW YORK - The Dow and the S&P 500 posted their biggest gains in three months as efforts to resolve the EU's debt crisis helped push the S&P above 1,200, an important technical level that signals the potential for the rally to continue.
The Australian market is receiving overwhelmingly positive leads from offshore trading overnight.
In economics news on Thursday, the Australian Bureau of Statistics releases data on international trade in goods and services and on retail trade, both for October.
Wednesday, December 1, 2010
Market Sentiment
Nasdaq -27 = -1
S&P 500 -7 = -1
Ftse -23 = -1
Nikkei -189 =- 1
Futures -2 = -2
Market Sentiment -8
The Australian market is receiving generally negative leads from offshore trading overnight, with most key markets lower, although precious and base metals were higher.