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.


Tuesday, May 31, 2011

Market Sentiment

Dow hol
Nasdaq hol
S&P 500 hol
Ftse hol
Nikkei -17 = -1
Futures 14 = 2

Market Sentiment 1

The Australian market is expected to open marginally stronger, despite the absence of significant leads from offshore trading overnight.

Monday, May 30, 2011

Market Sentiment

Dow 39 = 2
Nasdaq 14 = 1
S&P 500 5 = 1
Ftse 58= 1
Nikkei -40 = -1
Futures 5 = 2

Market Sentiment 6
The Australian sharemarket may gain after US equity and most commodity markets rose on Friday.

Trading may be subdued because of public holidays in the UK and US on Monday.

Friday, May 27, 2011

Market Sentiment

Dow 8 = 2
Nasdaq 22 = 1
S&P 500 5 = 1
Ftse 11= 1
Nikkei 139 = 1
Futures 5 = 2

Market Sentiment 8

The Australian market is expected to open marginally higher after Wall Street continued a recovery, although it ended relatively flat. Both oil and metals were mixed overnight.

Thursday, May 26, 2011

Market Sentiment

Dow 38 = 2
Nasdaq 15 = 1
S&P 500 4 = 1
Ftse 12 = 1
Nikkei -54 = -1
Futures 40 = 2

Market Sentiment 6

The Australian market is expected to open higher on Thursday after Wall Street ended a three-day losing streak to close moderately higher. Oil and metals rose in overnight trade, too.

Wednesday, May 25, 2011

Market Sentiment

Dow -25 = -2
Nasdaq -13 = -1
S&P 500 -1 = -1
Ftse 23= 1
Nikkei 17 = 1
Futures 3 = 2

Market Sentiment 0

The Australian sharemarket is expected to open higher after Wall Street closed flat overnight while European and Asian markets generally were higher. Oil and metals rose.

Tuesday, May 24, 2011

Market Sentiment

Dow -131 = -4
Nasdaq -44 = -2
S&P 500 -16 = -2
Ftse -113 = -1
Nikkei -147 = -1
Futures -29 = -2

Market Sentiment -12

The Australian market is expected to open lower on strongly negative leads from offshore trading overnight.

Monday, May 23, 2011

Market Sentiment

Dow -93 = -4
Nasdaq -20 = -1
S&P 500 -10 = -1
Ftse -8= - 1
Nikkei -14 = - 1
Futures -39 = -2

Market Sentiment -10

The Australian sharemarket is tipped to open lower on Monday on weak offshore leads after US companies cut earnings forecasts and Europe's debt woes worried investors.

Friday, May 20, 2011

Market Sentiment

Dow 45 = 2
Nasdaq 8 = 1
S&P 500 3 = 1
Ftse 33= 1
Nikkei -41 = - 1
Futures -11 = -2
Market Sentiment 2
The Australian sharemarket is set for a flat start after the release of weaker economic data in the United States and softer commodity prices.

Thursday, May 19, 2011

Market Sentiment

Dow 81 = 4
Nasdaq 32 = 2
S&P 500 12 = 1
Ftse 62= 1
Nikkei 95 = 1
Futures 24 = 2
Market Sentiment 11
The Australian sharemarket is expected to open higher, as a recovery in commodity prices sparked a more positive performance in share prices on Wall Street.

Wednesday, May 18, 2011

Market Sentiment

Dow -69 = - 4
Nasdaq 1 = 1
S&P 500 -1 = - 1
Ftse -63= -1
Nikkei 9 = 1
Futures -4 = - 2
Market Sentiment -6
The Australian market is expected to fall when it opens after Wall St and European markets fell overnight, and commodities edged downwards.

Tuesday, May 17, 2011

Market Sentiment

Dow -47 = - 2
Nasdaq -46 = -2
S&P 500 -8 = - 1
Ftse -2= -1
Nikkei -90 = -1
Futures -16 = - 2
Market Sentiment -9
The Australian sharemarket is expected to open lower, following falls on Wall Street in both commodities and equities.

Monday, May 16, 2011

Market Sentiment

Dow -100 = - 4
Nasdaq -35 = -2
S&P 500 -11 = - 1
Ftse -19= -1
Nikkei -68 = -1
Futures -35 = - 2
Market Sentiment -11
The Australian sharemarket is likely to decline after US equities fell about one per cent and the price of gold and some base metals declined.

Thursday, May 12, 2011

Market Sentiment

Dow -130 = -4
Nasdaq -27 = -1
S&P 500 -15 = -2
Ftse -43 = -1
Nikkei 46 = 1
Futures -56 = -4
Market Sentiment -11
The Australian market is expected to open lower, following heavy falls on Wall Street overnight in both commodities prices and equities.
US stocks nearly erased a three-day rally as energy and other commodity shares sank, feeding worries about the market's ability to stay on its upward path.

The second major breakdown in commodities in a week fuelled selling in other risky assets, including stocks. A stronger dollar and data showing a rise in US fuel supplies sent crude oil prices down more than 5 per cent, and the S&P energy index slid 3 per cent.

Wednesday, May 11, 2011

Market Sentiment

Dow 76 = 4
Nasdaq 29 = 1
S&P 500 11 = 1
Ftse 76 = 1
Nikkei 24 = 1
Futures 47 = 2

Market Sentiment 10

The Australian market is expected to open higher on Wednesday, following upbeat performances in markets broadly overnight.

Tuesday, May 10, 2011

Market Sentiment

Dow 46= 4
Nasdaq 15 = 1
S&P 500 6= 1
Ftse -34=-1
Nikkei -65 = -1
Futures 8=2
Market Sentiment 6
The Australian market is expected to open flat on Tuesday despite positive leads from offshore markets overnight and rising commodity prices.

Monday, May 9, 2011

Market Sentiment

Dow 55= 4
Nasdaq 13= 1
S&P 500 5= 1
Ftse 57=1
Nikkei -145 = -1
Futures 8=2
Market Sentiment 8
The Australian market is expected to open higher after surprisingly strong jobs data out of the United States on Friday saw overseas markets rise.

Friday, May 6, 2011

Market Sentiment

Dow -139= -4
Nasdaq -14=- 1
S&P 500 -12=- 1
Ftse -64=-1
Nikkei holiday
Futures -34=-2
Market Sentiment -9
The Australian stock market is expected to open lower on Friday, after Wall Street fell by around one per cent overnight, and commodities prices continued to plummet.

Thursday, May 5, 2011

Market Sentiment

Dow -84 = -4
Nasdaq -13=- 1
S&P 500 -9=- 1
Ftse -99=-1
Nikkei holiday
Futures -22=-2
Market Sentiment -9
The Australian share market is expected to open lower on Thursday following strongly negative leads from overseas markets overnight.

Wednesday, May 4, 2011

Market Sentiment

Dow .15 = 2
Nasdaq -22=- 1
S&P 500 -5=- 1
Ftse 13=1
Nikkei holiday
Futures -29=-2
Market Sentiment -1
The Australian stock market is tipped to open lower on Wednesday, following flat to lower performances by markets overseas overnight, and falls in the prices of precious metals and oil.

Tuesday, May 3, 2011

Market Sentiment

Dow -3 =- 2
Nasdaq -9=- 1
S&P 500 -2=- 1
Ftse 1=1
Nikkei 154=1
Futures -21=-2
Market Sentiment -4
US stocks slipped on Monday, as an early bounce on Osama bin Laden's death gave way to questions around the longevity of the market's recent rally.

The impact of bin Laden's death by US forces on financial markets prompted a quick flurry of buying, which was viewed as an emotional response. The Dow swung 92 points from its high of the day to its low.

Sunday, May 1, 2011

Market Sentiment

Dow 47 = 2
Nasdaq 1= 1
S&P 500 3= 1
Ftse holiday
Nikkei holiday
Futures 32=2
Market Sentiment 6
The Australian stock market is tipped to open higher tomorrow following a strong US lead, before falling back into the red as the high Australian dollar continues to put a dampener on local trade.