Think Financial Markets - Excellence In Trading Financial Markets: July 2011

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, July 29, 2011

Market Sentiment

Dow -62 = -4

Nasdaq 1 = 1

S&P 500 -4 = -1

Ftse 17 =1

Nikkei -146 = -1

Futures -4 = -2

Market Sentiment -6

The Australian stock market is expected to open lower on Friday, after US markets fell for the fifth straight day while the US searches for a solution to its debt crisis

Thursday, July 28, 2011

Market Sentiment

Dow -199 = -4

Nasdaq -75 =-2

S&P 500 -27 = -2

Ftse -73 =-1

Nikkei -51 = -1

Futures -64 = -4

Market Sentiment -14

The Australian sharemarket are expected to fall after US stocks slumped as investors feared the country's political standoff could force a default or downgrade of US sovereign debt.

Wednesday, July 27, 2011

Market Sentiment

Dow -91 = -4

Nasdaq -3 =-1

S&P 500 -5 = -1

Ftse 4 =1

Nikkei 48 = 1

Futures -16 = -2

Market Sentiment -6

The Australian sharemarket is expected to decline after US stocks fell on a White House threat to veto legislation that would avert a US debt default.

But Australian resource stocks may gain after the price of metals and oil rose.

Tuesday, July 26, 2011

Market Sentiment

Dow -88 = -4

Nasdaq -16 =-1

S&P 500 -8 = -1

Ftse -10 =-1

Nikkei -82 = -1

Futures 22 = 2

Market Sentiment -6

The Australian sharemarket has received negative leads from offshore trading overnight, with markets falling as US policy-makers continue to search for a resolution of the country's immediate debt problem.

Monday, July 25, 2011

Market Sentiment

Dow -43 = -2

Nasdaq 24 =1

S&P 500 1 = 1

Ftse 35 =1

Nikkei 122 = 1

Futures 3 = 2

Market Sentiment 4

The Australian sharemarket is expected to open slightly higher on Monday despite a mixed performance on United States markets on Friday.

Sophisticated Investor Opportunities

Qualifying investors can apply to join our sophisticated investor program. Investors in this program will have access to pre-IPO and other investment opportunities, including listed share placements, that are unavailable to retail investors. In order to qualify you must have net assets of $2.5 million or have a gross income for each of the last two financial years of at least $250,000 a year. This criteria must relate to the same entity to which the offer is made. A qualified accountant must certify that the person/entity satisfies this criteria and this certification must be no more than two years old. Certificate forms are available, for further information or to register FREE email thinkfinancial@amnet.net.au