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.


Thursday, March 31, 2011

Market Sentiment

Dow 71 = 4
Nasdaq 19 = 1
S&P 500 8 = 1
Ftse 16 =1
Nikkei 249 = 1
Futures 28 = 2
Market Sentiment 10

Monday, March 28, 2011

Market Sentiment

Dow 50= 4
Nasdaq 38= 1
S&P 500 4=1
Ftse 20 =1
Nikkei 101 = 1
Futures -9 = -2
Market Sentiment 6
The Australian sharemarket has received a positive set of leads from offshore markets, after Wall Street closed higher for the first week this month.

Friday, March 25, 2011

Market Sentiment

Dow 84= 4
Nasdaq 38= 1
S&P 500 12=1
Ftse 85 =1
Nikkei -14 = -1
Futures 28 = 2
Market Sentiment 8
he Australian stock market has received positive leads from the US and Europe, with Wall Street trading higher as investors looked past the litany of bad news.

Thursday, March 24, 2011

Market Sentiment

Dow 67= 4
Nasdaq 14= 1
S&P 500 4=1
Ftse 33 =-1
Nikkei -159 = -1
Futures 19 = 2
Market Sentiment 6
The Australian stock market has received a positive set of leads from offshore markets, with Wall Street trading higher and oil and metals prices firmer.

Wednesday, March 23, 2011

Market Sentiment

Dow -17= -2
Nasdaq -8= -1
S&P 500 -5=-1
Ftse -23 = -1
Nikkei 402 = 1
Futures -9 = -2
Market Sentiment -6
The Australian stock market has received a mixed set of leads from offshore markets, with Wall Street lower but oil and metals prices firmer.

Tuesday, March 22, 2011

Market Sentiment

Dow 178= 4
Nasdaq 48= 2
S&P 500 19=2
Ftse 68 = 1
Nikkei Holiday
Futures -18 = -2
Market Sentiment 7
Australian stocks are seen pushing higher on Tuesday for the third straight day, following Wall Street's gains as risk appetite improved, although weaker base metal prices may keep a lid on gains.

Monday, March 21, 2011

Market Sentiment

Dow 84= 4
Nasdaq 8= 1
S&P 500 5=1
Ftse 22 = 1
Nikkei 244 = 1
Futures -18 = -2
Market Sentiment 6
The Australian share market is set for a nervous start on Monday, after the US and a coalition of forces launched air strikes on Libya over the weekend.

Friday, March 18, 2011

Market Sentiment

Dow 161 = 4
Nasdaq 19 = 1
S&P 500 17 = 2
Ftse 98 = 1
Nikkei -131 = -1
Futures 18 = 2
Market Sentiment 9
Australian stocks are set to
open higher on Friday as sharply higher base metals prices, a
strong overseas lead, and bargain hunting support the market but
continued worries over Japan's nuclear crisis are likely to keep
volatility high.

Thursday, March 17, 2011

Market Sentiment

Dow -242= -4
Nasdaq -45= -2
S&P 500 -25=-2
Ftse -97 = -1
Nikkei 489 = 1
Futures -76 = -4
Market Sentiment -12
The Australian sharemarket is set for heavy falls when it opens with world markets again diving due to fears of a nuclear crisis in Japan.

Wednesday, March 16, 2011

Market Sentiment

Dow -137= -4
Nasdaq -34= -2
S&P 500 -15=-2
Ftse -80 = -1
Nikkei -1015 = -1
Futures 13 = 2
Market Sentiment -8
The Australian sharemarket has received negative leads from world equity and commodities markets as the sell-off continues due to the nuclear danger looming in Japan.

Tuesday, March 15, 2011

Market Sentiment

Dow -51= -4
Nasdaq -15= -1
S&P 500 -8=-1
Ftse -53 = -1
Nikkei -630 = -1
Futures -5 = -2
Market Sentiment -10
The Australian sharemarket has received strongly negative leads from offshore trading overnight, as world markets reflect uncertainty over the effects of political turmoil in North Africa and the Middle East, and the earthquake and tsunami in Japan.

Monday, March 14, 2011

Market Sentiment

Dow 60= 4
Nasdaq 14= 1
S&P 500 9=1
Ftse -17 = -1
Nikkei -180 = -1
Futures 8 = 2
Market Sentiment 6
The Australian market has received positive leads from Wall Street over the weekend, although world markets appear tentative as they assess the impact of the Japanese earthquake.

Friday, March 11, 2011

Market Sentiment

Dow -228= -4
Nasdaq -45= -2
S&P 500 -25=-2
Ftse -92 = -1
Nikkei -155 = -1
Futures -34 = -4
Market Sentiment -14

NEW YORK - Fears about the economy and unrest in Saudi Arabia darkened the outlook for equities on Thursday, pushing major indexes below key technical levels.

The Dow's worst day in seven months came after reports that authorities in Saudi Arabia had opened fire on demonstrators, increasing anxiety about instability in major oil producing nations.

Thursday, March 10, 2011

Market Sentiment

Dow -1= -2
Nasdaq -14 = -1
S&P 500 -2=-1
Ftse -37 = -1
Nikkei 64 = 1
Futures 2 = 2
Market Sentiment 2
The Australian market is receiving mixed leads from offshore trading overnight, with Wall Street's key indices flat, while precious metals were higher and oil eased.

Wednesday, March 9, 2011

Market Sentiment

Dow 124= 4
Nasdaq 20 = 1
S&P 500 12= 1
Ftse 1 = 1
Nikkei 20 = 1
Futures 7 = 2
Market Sentiment 10

Tuesday, March 8, 2011

Market Sentiment

Dow -79= -4
Nasdaq -39 = -2
S&P 500 -11= -1
Ftse -17 = -1
Nikkei 189 = -1
Futures -23 = -2
Market Sentiment -11
The Australian market is receiving strongly negative leads from offshore trading overnight, as continuing unrest in North Africa and the Middle East induces nervousness on world markets.

Monday, March 7, 2011

Market Sentiment

Dow -88= -4
Nasdaq -14 = -1
S&P 500 -10 = -1
Ftse -15 = -1
Nikkei 107 = 1
Futures -28 = -2
Market Sentiment -8
The Australia sharemarket is expected to open softer after weak US leads but will be buoyed by stronger gold and oil prices.

Wall Street erased most of its weekly gains on Friday as fears of more geopolitical turmoil and higher oil prices threaten to stifle rallies in coming weeks.

The worries overshadowed strong labour market news. US unemployment fell below 9 per cent for the first time in nearly two years, but investors quickly turned to focus on intensified fighting in Libya and simmering unrest throughout the region.

Friday, March 4, 2011

Market Sentiment

Dow 191= 4
Nasdaq 51 = 2
S&P 500 23 = 2
Ftse 90 = 1
Nikkei 94 = 1
Futures 49 = 2
Market Sentiment 12
Australian stocks are expected to open firmer on Friday after Wall Street rallied overnight on lower oil prices and better-than-expected economic data.

Thursday, March 3, 2011

Market Sentiment

Dow 9= 2
Nasdaq 11 = 1
S&P 500 2 = 1
Ftse -21 =- 1
Nikkei -262 = -1
Futures 18 = 2
Market Sentiment 4
US stocks eked out gains on Wednesday despite another rise in oil prices as investors bet the latest data signalled the economy could absorb expected higher energy costs.

Wednesday, March 2, 2011

Market Sentiment

Dow -168 = -4
Nasdaq -45 = -2
S&P 500 -21 = -2
Ftse -58 =- 1
Nikkei -130 = -1
Futures -58 = -4
Market Sentiment -14
The Australian market is receiving overall negative leads from offshore trading overnight, with rises in Asian markets on Tuesday followed by heavy falls on Wall St and in Europe. Commodities prices are higher.

Tuesday, March 1, 2011

Market Sentiment

Dow 96 = 4
Nasdaq 1 = 1
S&P 500 7 = 1
Ftse -7 =- 1
Nikkei 97 = 1
Futures 20 = 2
Market Sentiment 8
The Australian market is receiving positive leads from offshore trading overnight. Wall St is generally higher, as are European and Asian indices. Precious metals and industrial are higher, but oil is down.

In economics news on Tuesday, the Reserve Bank of Australia (RBA) holds its monthly board meeting to consider, inter alia, the official interest rate, with a decision to be announced at 1430 AEDT.

The Australian Bureau of Statistics (ABS) releases data on Australia's balance of payments and international investment position in December, on retail trade in January, and Government Finance Statistics for the December quarter.