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.
Monday, February 28, 2011
Market Sentiment
Nasdaq 43 = 2
S&P 500 14 = 1
Ftse 81 = 1
Nikkei 74 = 1
Futures 20 = 2
Market Sentiment 11
Australian stocks are expected to open in positive territory in line with a rally on Wall Street.
Record Australian corporate cash holdings and low gearing is expected to support the Australian bourse as earnings season wraps up this week.
Friday, February 25, 2011
Market Sentiment
Nasdaq 15 = 1
S&P 500 -1 = -1
Ftse -3 = -1
Nikkei -126 = -1
Futures -14 = - 2
Market Sentiment -6
The Australian market is set to continue its falls when it opens on Friday as Wall Street was down for a third consecutive day due to rising oil prices.
Thursday, February 24, 2011
Market Sentiment
Nasdaq -33 = -2
S&P 500 -8 = -1
Ftse -73 = -1
Nikkei -86 = -1
Futures -23 = - 2
Market Sentiment -11
US stocks dropped for a second straight session on Wednesday as Libya's violence sent oil prices up briefly to $US100 a barrel and tech shares sank, adding credence to calls for a market correction.
Oil futures jumped to their highest since October 2008 amid worries about supply disruptions in Libya, a top oil producer. Late in the day, oil eased off the day's highs, helping stocks trim losses.
Wednesday, February 23, 2011
Market Sentiment
Nasdaq -78 = -2
S&P 500 -28 = -2
Ftse -18 = -1
Nikkei -193 = -1
Futures -44 = - 2
Market Sentiment -12
The Australian market is likely to fall after equity markets around the world slumped as investors worried about the increasingly violent unrest in Libya.
Tuesday, February 22, 2011
Market Sentiment
Nasdaq holiday
S&P 500 holiday
Ftse -68 =-1
Nikkei 15=1
Futures 3 = 2
Market Sentiment 2
The Australian market has received mixed to negative leads from offshore trading overnight, with nervousness stemming from unrest in the Middle East and concerns over possible economic tightening in China contrasting with positive economic news in Europe.
With US markets closed for a public holiday, there has been no lead offered from Wall Street.
Monday, February 21, 2011
Market Sentiment
Nasdaq 2 = 1
S&P 500 3= 1
Ftse -4 =-1
Nikkei 6=1
Futures -12 =- 2
Market Sentiment 4
The Australian market has received mixed to positive leads from offshore trading over the weekend. Wall Street indices were higher, but oil and copper were lower. Precious metals were higher.
Friday, February 18, 2011
Market Sentiment
Nasdaq 6 = 1
S&P 500 4= 1
Ftse 2 =1
Nikkei 28=1
Futures 11 = 2
Market Sentiment 8
The Australian market is receiving positive leads from diverse markets in offshore trading overnight, with all key securities indices higher, as well as precious and industrial metals and oil.
Thursday, February 17, 2011
Market Sentiment
Nasdaq 21 = 1
S&P 500 8= 1
Ftse 48 =1
Nikkei 61=1
Futures 11 = 2
Market Sentiment 10
The Australian market is receiving clear, positive leads from offshore trading overnight, with all three key Wall Street indices substantially higher, as were European and Asian markets. Gold was flat but higher, oil was higher, but silver and copper were lower.
Wednesday, February 16, 2011
Market Sentiment
Nasdaq -13 = -1
S&P 500 -4= -1
Ftse -23 =-1
Nikkei 21=1
Futures -6 =- 2
Market Sentiment -6
The Australian market is receiving negative leads from offshore trading overnight, with Wall Street's key indices all clearly lower, along with oil, although precious metals were higher.
Tuesday, February 15, 2011
Market Sentiment
Nasdaq 8 = 1
S&P 500 4= 1
Ftse -3 =-1
Nikkei 120=1
Futures 7 = 2
Market Sentiment 2
The Australian market is receiving mixed leads from offshore trading overnight, with Wall Street's key indices flat and mixed, precious metals higher, but oil was lower.
Monday, February 14, 2011
Market Sentiment
Nasdaq 19 = 1
S&P 500 7= 1
Ftse 43 =1
Nikkei -12=-1
Futures 39 = 2
Market Sentiment 6
The Australian market has received positive leads leading into Monday's trade, with offshore markets buoyed following the departure overnight on Friday of Egyptian president Mubarak.
Friday, February 11, 2011
Market Sentiment
Nasdaq 1 = 1
S&P 500 1= 1
Ftse -32 =-1
Nikkei -12=-1
Futures -5 = -2
Market Sentiment -4
The Australian market is receiving mixed leads from offshore trading overnight. Most key market indices were lower, but oil and copper were higher.
Thursday, February 10, 2011
Market Sentiment
Nasdaq -8 = -1
S&P 500 -4=- 1
Ftse -39 =-1
Nikkei -18=-1
Futures -5 = -2
Market Sentiment -4
The Australian market is receiving negative leads from offshore trading overnight. Wall Streets's key indices were lower, as were European and Asian markets in Wednesday trade. Precious metals and oil were higher, but industrial metals eased.
In economics news on Thursday, the Australian Bureau of Statistics releases labour force data for January.
Wednesday, February 9, 2011
Market Sentiment
Nasdaq 13 = 1
S&P 500 6= 1
Ftse 40 = 1
Nikkei 44=1
Futures 14 = 2
Market Sentiment 10
The Australian market is receiving positive leads from offshore trading overnight. All key Wall St indices are higher in late trading. European markets also were higher overnight, as were precious metals. Copper was down slightly, and oil continued to fall.
Tuesday, February 8, 2011
Market Sentiment
Nasdaq 15 = 1
S&P 500 8 = 1
Ftse 54 = 1
Nikkei 49=1
Futures 19 = 2
Market Sentiment 10
The merry run on the US bourse continued overnight and this will see the local bourse higher at the opening by at least 20 points according to the indication provided by the movement of the SPI Futures contract.
Monday, February 7, 2011
Market Sentiment
Nasdaq 15 = 1
S&P 500 4 = 1
Ftse 14 = 1
Nikkei 112 =1
Futures 8 = 2
Market Sentiment 8
The Australian sharemarket is expected to open slightly higher following a positive US lead but trading could be subdued as investors await results from the corporate earnings season.
Friday, February 4, 2011
Market Sentiment
Nasdaq 4 = 1
S&P 500 3 = 1
Ftse -17 =- 1
Nikkei -26 =-1
Futures 13 = 2
Market Sentiment 4
The Australian market is receiving weak leads from offshore trading overnight, with Wall Street flat, European markets mixed, Asian markets mostly closed, while precious metals were higher. Oil was down slightly.
Thursday, February 3, 2011
Market Sentiment
Nasdaq 2 = -1
S&P 500 -4 = -1
Ftse 2 = 1
Nikkei 183 =1
Futures 42 = 2
Market Sentiment 4
The Australian market is receiving mixed leads from offshore trading overnight, with Wall Streets's key indices flat while commodities also were mixed.
Wednesday, February 2, 2011
Market Sentiment
Nasdaq 51 = 2
S&P 500 21 = 2
Ftse 95 = 1
Nikkei 37 =1
Futures 42 = 4
Market Sentiment 14
The Australian market is receiving strong, positive leads from offshore trading overnight, with Wall St indices turning in robust performances on strong earnings reports. Metals were higher, although oil eased.
In economics news on Wednesday, the Housing Industry Association releases data on new home sales in December.
Tuesday, February 1, 2011
Market Sentiment
Nasdaq 13 = 1
S&P 500 10 = 1
Ftse -18 = -1
Nikkei -122 =-1
Futures 12 = 2
Market Sentiment 6
The Australian market is receiving generally positive leads from offshore trading overnight, with Wall Street indices rebounding from heavy losses on Friday. Precious metals were mixed, but oil prices surged.
In economics news on Tuesday, the board of the Reserve Bank of Australia (RBA) holds its first monthly meeting for 2011 to consider, inter alia, benchmark interest rates. It is to announce its decision at 1430 AEDT.