Think Financial Markets - Excellence In Trading Financial Markets: September 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, September 30, 2011

Market Sentiment

Dow 143 = 4

Nasdaq -11 =- 1

S&P 500 9= 1

Ftse -21 =-1

Nikkei 86 =1

Futures 21 = 2

Market Sentiment 6

The Australian sharemarket looks set to open higher, bucking the overnight trend of Wall Street.

At 0630 AEST on Friday, the December share price index futures contract was up 14 points at 4,020.

In economic news on Friday, the federal government releases its final budget outcome.

Thursday, September 29, 2011

Market Sentiment

Dow -180 =- 4

Nasdaq -55 =- 2

S&P 500 -24= -2

Ftse -76 =-1

Nikkei 6 =1

Futures -58 =-4

Market Sentiment -12

The Australian sharemarket looks set to open lower, after sharp declines on Wall Street.

At 0649 AEST on Thursday, the December share price index futures contract was down 58 points at 4,4005.

In economic news on Thursday, the Australian Bureau of Statistics releases job vacancies data for August.

Wednesday, September 28, 2011

Market Sentiment

Dow 147 = 4

Nasdaq 30 = 2

S&P 500 12= 1

Ftse 205 =1

Nikkei 236 =1

Futures 28 =2

Market Sentiment 11

The Australian sharemarket looks set to open higher, following strong gains on Wall Street overnight.

At 0704 AEST, the December share price index futures contract was up 28 points at 4,061.

In economic news on Wednesday, the Housing Industry Association (HIA) releases new home sales data for August.

Tuesday, September 27, 2011

Market Sentiment

Dow 272 = 4

Nasdaq 33 = 2

S&P 500 27= 2

Ftse 23 =1

Nikkei -186 =-1

Futures 105 =4

Market Sentiment 12

The Australian sharemarket looks set to open higher after Wall Street closed up 2.5 per cent.

At 0652 AEST on Tuesday, the December share price index futures contract was up 105 points at 3,984.

There is no economic news expected on Tuesday.

Market Sentiment

Dow 272 = 4

Nasdaq 33 = 2

S&P 500 27= 2

Ftse 23 =1

Nikkei -186 =-1

Futures 105 =4

Market Sentiment 12

The Australian sharemarket looks set to open higher after Wall Street closed up 2.5 per cent.
At 0652 AEST on Tuesday, the December share price index futures contract was up 105 points at 3,984.
There is no economic news expected on Tuesday.

Sunday, September 25, 2011

Market Sentiment for 26th September

Dow 38 = 2

Nasdaq 28 = 1

S&P 500 7= 1

Ftse 25 =1

Nikkei -181 =-1

Futures -9 = -2

Market Sentiment 2

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