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, June 30, 2011

Market Sentiment

Dow 73= 4
Nasdaq 11 = 1
S&P 500 11= 1
Ftse 89 =1
Nikkei 148 = 1
Futures 31 = 2

Market Sentiment 10
The Australian share market has received strong positive leads for the third successive day this week after securities and commodities markets rose overnight, as a vote in the Greek parliament moved the country another step away from debt default.

Wednesday, June 29, 2011

Market Sentiment

Dow 145= 4
Nasdaq 41 = 2
S&P 500 17= 2
Ftse 45 =1
Nikkei 52 = 1
Futures 45 = 2

Market Sentiment 12

The Australian sharemarket is expected to benefit from a second consecutive day of strong performances by Wall Street.

Tuesday, June 28, 2011

Market Sentiment

Dow 109= 4
Nasdaq 35 = 2
S&P 500 12= 1
Ftse 25 =1
Nikkei -100 = -1
Futures 45 = 2

Market Sentiment 8
US stocks rose from three days of losses on Monday, led by banks after news of more favourable capital requirements and optimism over Greece's austerity plan, but investors cautioned against high hopes.

Monday's gains were a welcome sign of strength but investors were cautious about reading too much into the move. The S&P 500 has fallen as much as 7 per cent since April and Monday's volume was lower than average.

Monday, June 27, 2011

Market Sentiment

Dow -115= -4
Nasdaq -34 = -2
S&P 500 -15= -2
Ftse 23 =1
Nikkei 82 = 1
Futures -41 = -2

Market Sentiment -8

The Australian sharemarket is expected to open around one per cent lower on Monday after US stocks fell due to fresh concerns about the financial stability of the eurozone.

Friday, June 24, 2011

Market Sentiment

Dow -60= -4
Nasdaq 18 = 1
S&P 500 -4= -1
Ftse -99 =-1
Nikkei -33 = -1
Futures 1 = 2

Market Sentiment -4
Greece won the consent of international lenders on Thursday for a five-year austerity plan intended to avoid looming bankruptcy and its prime minister pledged to push radical economic reforms through parliament.

Thursday, June 23, 2011

Market Sentiment

Dow -80= -4
Nasdaq -18 =- 1
S&P 500 -8= -1
Ftse -2 =-1
Nikkei 170 = 1
Futures -19 = -2

Market Sentiment -9

The Australian stock market has received a mostly negative lead from offshore trading, after Wall Street closed lower and copper prices settled weaker. Oil, gold and silver prices ended firmer.

Market Sentiment

Dow -80= -4
Nasdaq -18 =- 1
S&P 500 -8= -1
Ftse -2 =-1
Nikkei 170 = 1
Futures -19 = -2

Market Sentiment -9

The Australian stock market has received a mostly negative lead from offshore trading, after Wall Street closed lower and copper prices settled weaker. Oil, gold and silver prices ended firmer.

Wednesday, June 22, 2011

Market Sentiment

Dow 110= 4
Nasdaq 13 = 1
S&P 500 17= 2
Ftse 82 =1
Nikkei 105 = 1
Futures 34 = 2

Market Sentiment 11
The Australian sharemarket has received positive leads from offshore trading, after Wall Street closed higher and commodities prices settled firmer.

In Europe, the Greek government has won a vote of confidence, overcoming a first hurdle in winning new financing to avoid bankruptcy.

Tuesday, June 21, 2011

Market Sentiment

Dow 76= 4
Nasdaq 13 = 1
S&P 500 7= 1
Ftse -22 =-1
Nikkei 3 = 1
Futures 35 = 2

Market Sentiment 8
The Australian sharemarket has received a mostly positive lead from offshore trading, after Wall Street closed higher and gold, silver and oil prices settled firmer.

Monday, June 20, 2011

Market Sentiment

Dow 43 = 2
Nasdaq 7 = 1
S&P 500 4 = 1
Ftse 16 =1
Nikkei -60 = -1
Futures 3 = 2

Market Sentiment 6
The Australian sharemarket has received a mostly positive lead from weekend offshore trading, after Wall Street closed higher and gold and silver prices settled firmer.Further uncertainty is likely to be a feature of the market this week, as concern surrounding Greece's debt crisis continues to outweigh mostly positive leads from the US and Europe.

Thursday, June 16, 2011

Market Sentiment

Dow -179 = -4
Nasdaq -47 = -2
S&P 500 -22 = -2
Ftse -61 =-1
Nikkei 26 = 1
Futures -53 = -4

Market Sentiment -12
The Australian share market is likely to decline after global equity and commodities markets declined overnight on weakening US economic data and Greece's escalating debt crisis.

Wednesday, June 15, 2011

Market Sentiment

Dow 123 = 4
Nasdaq 39 = 2
S&P 500 16 = 2
Ftse 28 =1
Nikkei 100 = 1
Futures 13 = 2

Market Sentiment 12
The Australian market is expected to open higher on Wednesday, after Wall Street securities and commodities markets lifted overnight.

Tuesday, June 14, 2011

Market Sentiment

Dow 1 = 2
Nasdaq 9 = 1
S&P 500 1 = 1
Ftse 8 =1
Nikkei -6 = -1
Futures -9 = -2

Market Sentiment 2

The Australian market is expected to open slightly lower on Tuesday, after Wall Street stabilised following steep losses on Friday.

Friday, June 10, 2011

Market Sentiment

Dow 75 = 4
Nasdaq 9 = 1
S&P 500 9 = 1
Ftse 47 =1
Nikkei 18 = 1
Futures 21 = 2

Market Sentiment 10

The Australian sharemarket is expected to open higher, after Wall Street snapped a losing streak in overnight trade and commodities generally ended higher as well.

Thursday, June 9, 2011

Market Sentiment

Dow -22 = -2
Nasdaq -26 = -1
S&P 500 -5 = -1
Ftse -56 =-1
Nikkei 7 = 1
Futures -20 = -2

Market Sentiment -6

The Australian market again has received negative leads from offshore trading overnight, with Wall St and European markets ending lower while oil bounced higher. Precious metals fell, and base metals were mixed.

Wednesday, June 8, 2011

Market Sentiment

Dow -19 = -2
Nasdaq -1 = -1
S&P 500 -1 = -1
Ftse 1 =1
Nikkei 82 = 1
Futures 1 = 1

Market Sentiment -1
The Australian market has received mixed to negative leads from offshore trading overnight, with Wall St closing lower in a late drop just before the markets closed.

Tuesday, June 7, 2011

Market Sentiment

Dow -61 = -4
Nasdaq -30 = -2
S&P 500 -14 = -1
Ftse 8 =1
Nikkei -112 = -1
Futures -31 = -2

Market Sentiment -9
The Australian market has received negative leads from offshore trading overnight, with Wall St closing lower, along with oil, while precious metals rose.

In economics news on Tuesday, markets are waiting on the Reserve Bank of Australia's monthly board meeting, which is to consider official interest rates, amongst other things. The board's decision will be announced at 1430 AEST.

Monday, June 6, 2011

Market Sentiment

Dow -97 = -4
Nasdaq -41 = -2
S&P 500 -13 = -1
Ftse 7 =1
Nikkei -63 = -1
Futures -33 = -2

Market Sentiment -9
The bad news is set to continue for Australian shareholders, with the sharemarket tipped to fall following heavy losses in the US on Friday.

The Dow Jones Industrial Average is in the midst of its longest streak of losses since 2004, following negative reports on jobs and manufacturing.

Friday, June 3, 2011

Market Sentiment

Dow -41 = -2
Nasdaq 4 = 1
S&P 500 -2 = -1
Ftse -81 =-1
Nikkei -165 = -1
Futures -2 = -2

Market Sentiment -6

The Australian market is expecting a flat start to trade, a day after posting its worst fall in 12 months.

Mixed to negative leads from offshore trading overnight were not expected to weigh heavily on the local market.

Thursday, June 2, 2011

Market Sentiment

Dow -280 = -4
Nasdaq -66 = -2
S&P 500 -31 = -2
Ftse -61 =-1
Nikkei 26 = 1
Futures -72 = -4

Market Sentiment -12
The Australian sharemarket has received negative leads from offshore trading overnight, with Wall St ending over two per cent lower, while commodities also generally fell heavily.

Wednesday, June 1, 2011

Market Sentiment

Dow 128 = 4
Nasdaq 38 = 2
S&P 500 14 = 1
Ftse 51 =1
Nikkei 189 = 1
Futures 21 = 2

Market Sentiment 11


The Australian market is expected to open higher, following robust performances in Asia, Europe, and then on Wall Street overnight.