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, April 29, 2011

Market Sentiment

Dow 72 = 4
Nasdaq 3= 1
S&P 500 5= 1
Ftse 2 = 1
Nikkei 158=1
Futures 9=2
Market Sentiment 10
The Australian sharemarket has received positive leads from offshore trading overnight, with Wall Street and commodities finishing higher, after mixed data in the US was offset by strong earnings reports.

Thursday, April 28, 2011

Market Sentiment

Dow 96 = 4
Nasdaq 22= 1
S&P 500 8= 1
Ftse -1 =- 1
Nikkei 133=1
Futures 37=2
Market Sentiment 8
The outlook is positive for the Australian sharemarket, with strong leads from Wall Street and European equities markets overnight, and higher prices in oil and precious metals.

Wednesday, April 27, 2011

Market Sentiment

Dow 115 = 4
Nasdaq 22= 1
S&P 500 12= 1
Ftse 51 = 1
Nikkei 113=-1
Futures 21=2
Market Sentiment 8
Trading on the Australian stock market is tipped to open flat after a five-day break and should stay that way if new inflation figures are within official targets.

The Australian Bureau of Statistics (ABS) will release its consumer price index for the March quarter Wednesday morning.

Thursday, April 21, 2011

Market Sentiment

Dow 187 = 4
Nasdaq 10= 1
S&P 500 18= 2
Ftse 125 = 1
Nikkei 166=1
Futures 47 =2
Market Sentiment 11
Indicators are strong for the last day of local trading before the five-day Easter break, with robust, positive leads from trading offshore overnight in securities and commodities.

Wednesday, April 20, 2011

Market Sentiment

Dow 65 = 4
Nasdaq 10= 1
S&P 500 7= 1
Ftse 27 = 1
Nikkei -116= -1
Futures 31 =2
Market Sentiment 8
The Australian market has received positive leads from offshore trading overnight. All key indices on Wall Street finished higher, as did European markers. Gold and silver hit new records, copper rose, and oil also finished higher

Tuesday, April 19, 2011

Market Sentiment

Dow 140 = -4
Nasdaq -29=- 1
S&P 500 -15= -2
Ftse -126 =- 1
Nikkei -35= -1
Futures -46 =- 2
Market Sentiment -11
The Australian market has received strongly negative leads from offshore trading overnight, with Wall Street's key indices all finishing over one per cent lower. Gold and silver were higher, but oil slumped.

Monday, April 18, 2011

Market Sentiment

Dow 57 = 4
Nasdaq 4= 1
S&P 500 5= 1
Ftse 32 = 1
Nikkei -62= -1
Futures 16 = 2
Market Sentiment 8
The Australian stock market is tipped to open higher after a mostly positive lead from Wall Street, with the focus for the week ahead expected to be on sales figures due from two major retailers.

Both Woolworths Ltd and Coles owner Wesfarmers Ltd are due to report third quarter sales this week, which may help offer some further clues about consumers' state of mind.

Friday, April 15, 2011

Market Sentiment

Dow 14 = 2
Nasdaq -1= -1
S&P 500 1= 1
Ftse -47 = -1
Nikkei 13= 1
Futures 4 = 2
Market Sentiment 4
The Australian sharemarket has received positive leads from offshore trading overnight, with securities indices flat to higher, and precious metals and oil also rising.

Thursday, April 14, 2011

Market Sentiment

Dow 7 = 2
Nasdaq 17= 1
S&P 500 1= 1
Ftse 46 = 1
Nikkei 86= 1
Futures -9 =- 2
Market Sentiment 4
The Australian sharemarket has received largely positive leads from offshore trading overnight, with securities indices more buoyant and both gold and oil reversing recent losses.

Wednesday, April 13, 2011

Market Sentiment

Dow -117=-4
Nasdaq -27= -1
S&P 500 -10=- 1
Ftse -89 =- 1
Nikkei -164= -1
Futures -26 =- 2
Market Sentiment -10
The Australian market has received negative leads from offshore trading overnight, with securities indices and key commodities all lower.

Tuesday, April 12, 2011

Market Sentiment

Dow 1= 2
Nasdaq -9= -1
S&P 500 -4=- 1
Ftse -2 =- 1
Nikkei -48= -1
Futures -20 =- 2
Market Sentiment -4
The Australian sharemarket has received mixed leads from offshore trading overnight, with securities markets flat to lower, while metals were mixed and oil fell.

Monday, April 11, 2011

Market Sentiment

Dow -29=- 2
Nasdaq -16= -1
S&P 500 -5=- 1
Ftse 48 = 1
Nikkei 177= 1
Futures -11 =- 2
Market Sentiment -4

Australian dollar may weigh.
CommSec chief equities economist Craig James said the strong Australian dollar, which hit an all-time high against the greenback of $1.0539 on Friday, may weigh on the bourse.

Fund managers in the US and Europe tended to invest using US dollars, so Australian shares could be seen as too expensive.

Friday, April 8, 2011

Market Sentiment

Dow -17=- 2
Nasdaq -4= -1
S&P 500 -2=- 1
Ftse -34 = -1
Nikkei 7= 1
Futures -5 =- 2
Market Sentiment -6

The Australian market has received mixed leads from offshore trading overnight. Wall Street ended slightly lower after recouping earlier losses, while European markets were lower and Asia was mixed.
Oil and gold hit new highs.

It's a quite day ahead in economics news, with the only item scheduled being the sale by the Australian Office of Financial Management (AOFM) of $700 million of June 2016 bonds.

Thursday, April 7, 2011

Market Sentiment

Dow 32= 2
Nasdaq 9= 1
S&P 500 3= 1
Ftse 34 = 1
Nikkei -31= -1
Futures 4 = 2
Market Sentiment 6
The Australian market has received positive leads from offshore trading overnight. Key securities markets were higher, oil reached a new record, and metals also rose.

Wednesday, April 6, 2011

Market Sentiment

Dow -6= -2
Nasdaq 2= 1
S&P 500 -1=-1
Ftse -10 =-1
Nikkei -103 = -1
Futures -3 = -2
Market Sentiment -6
The S&P 500 failed to break a key technical resistance level for a second day on Tuesday as low trading volume raised further questions about the market's strength.

The broader market index closed slightly below 1,333, a closely watched level as it represents a doubling from the low reached in March 2009.

Tuesday, April 5, 2011

Market Sentiment

Dow 23= 2
Nasdaq -1= -1
S&P 500 1=1
Ftse 7 =1
Nikkei 11 = 1
Futures 9 = 2
Market Sentiment 6
The Australian market has received mixed leads from offshore trading overnight, with Wall Street ending flat, and Europe and Asian markets closed mixed, as were key commodities.

Monday, April 4, 2011

Market Sentiment

Dow 57= 4
Nasdaq 9= 1
S&P 500 7=1
Ftse 101 =1
Nikkei -47 =- 1
Futures 33 = 2
Market Sentiment 8
The Australian sharemarket has received a mostly positive set of leads from offshore, with Wall Street closing higher.

Oil prices also settled firmer, although metals prices ended weaker.

Friday, April 1, 2011

Market Sentiment

Dow -31 =-2
Nasdaq 4 = 1
S&P 500 -2 = -1
Ftse -30 = -1
Nikkei 46 = 1
Futures -2 = -2
Market Sentiment -4