Think Financial Markets - Excellence In Trading Financial Markets: November 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.

Wednesday, November 30, 2011

Market Sentiment

Dow 33 = 2

Nasdaq -5 = -1

S&P 500 3 = 1

Ftse 24 = 1

Nikkei -190 = -1

Futures -26 = - 2

Market Sentiment 0

The Australian sharemarket looks set to open lower, following mixed movements on Wall Street but a higher close on European markets despite Italy being forced to pay record rates at a bond auction and intense pressure on eurozone finance ministers to avert economic meltdown.

Tuesday, November 29, 2011

Market Sentiment

Dow 291 = 4

Nasdaq 85 = 2

S&P 500 33 = 2

Ftse 148 = 1

Nikkei 127 = 1

Futures 26 = 2

Market Sentiment 12

Monday, November 28, 2011

Market Sentiment

Dow -25 = -2

Nasdaq -18 = -1

S&P 500 -3 = -1

Ftse 37 = 1

Nikkei -5 = -1

Futures 19 = 2

Market Sentiment -2

The Australia market looks set for a flat open following a weak session on Wall Street and Euro Zone leaders continue to talk about fixing the debt crisis.

Friday, November 25, 2011

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Market Sentiment

Dow CLOSED

Nasdaq CLOSED

S&P 500 CLOSED

Ftse -12 =-1

Nikkei -150 =-1

Futures 4 = 2

Market Sentiment 0

The Australian sharemarket looks set to open slightly higher, despite European bourses ending mostly lower and the absence of a lead from the United States.

Thursday, November 24, 2011

Market Sentiment

Dow -236 = -4

Nasdaq -61 = -2

S&P 500 -26 = -2

Ftse -67 =-1

Nikkei -34 =-1

Futures -25 = -2

Market Sentiment -12

The Australian sharemarket looks set to open lower following negative movements on international bourses after a weak sale of German 'gold standard' bonds stoked concerns that no one can be safe from the deepening eurozone debt crisis.

Wednesday, November 23, 2011

Market Sentiment

Dow -54 = -4

Nasdaq -2 = -1

S&P 500 -5 = -1

Ftse -16 =-1

Nikkei -34 =-1

Futures -24 = -2

Market Sentiment -10

The Australian sharemarket looks set to open lower after a mixed night on Wall Street and falls on major European bourses as the region's leaders met to try to resolve the relentless debt crisis now threatening big nations such as France.

Tuesday, November 22, 2011

Market Sentiment

Dow -248 = -4

Nasdaq -49 = -2

S&P 500 -23 = -2

Ftse -140 =-1

Nikkei -27 =-1

Futures -65 = -4

Market Sentiment -14

The Australian sharemarket looks set to open lower following significant falls on international markets overnight.

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