Think Financial Markets - Excellence In Trading Financial Markets: February 2012

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, February 29, 2012

Market Sentiment

Dow 15 = 2

Nasdaq 13 = 1

S&P 500 5 = 1

Ftse 12 = 1

Nikkei 88 =1

Futures 7 = 2

Market Sentiment 8

The Australian sharemarket looks set to open little changed, the same it way it closed the previous session.

Tuesday, February 28, 2012

Market Sentiment

Dow -1 = -2

Nasdaq 2 = 1

S&P 500 2 = 1

Ftse -20 = - 1

Nikkei -13 = -1

Futures -2 = -2

Market Sentiment -4

Local stocks will position themselves ahead of European Central Bank lending and after German lawmakers approved Greek aid.

Saturday, February 25, 2012

Market Sentiment for 27th Feb 2012

Dow -2 = -2

Nasdaq 7 = 1

S&P 500 2 = 1

Ftse -3 = - 1

Nikkei 52 = 1

Futures -7 = -2

Market Sentiment -2

Friday, 24 February – The local share market notched its strongest weekly performance in 12 weeks after a positive lead from Wall Street, with financial and mining stocks driving gains.

Friday, February 24, 2012

Market Sentiment

Dow 46 = 2

Nasdaq 24 = 1

S&P 500 6 = 1

Ftse 21 = 1

Nikkei 42 = 1

Futures 13 = 2

Market Sentiment 8

The Australian sharemarket looks set to open higher, following the overnight lead of Wall Street which gained on reports the number of Americans seeking unemployment benefits last week was unchanged, staying at its lowest point in four years.

Thursday, February 23, 2012

Market Sentiment

Dow -27 = -2

Nasdaq -15 = -1

S&P 500 -5 = - 1

Ftse -12 = - 1

Nikkei 91 = 1

Futures -12 = -2

Market Sentiment -6

The Australian sharemarket looks set to open flat as relief at a massive Greek debt bailout gives way to growing scepticism the deal can really work.

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