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

Friday, April 27, 2012

Dow 114 = 4

Nasdaq 21 = 1

S&P 500 9 = 1

Ftse 30 = 1

Nikkei 1 = 1

Futures 18 = 2

Market Sentiment 10

Local markets are set to open higher after a strong lead from Wall St

Thursday, April 26, 2012

Dow 89 = 4

Nasdaq 68 = 2

S&P 500 19 = 2

Ftse 9 = 1

Nikkei 93 = 1

Futures 17 = 2

Market Sentiment 12

Local shares are expected to open higher after another night of gains offshore.

Tuesday, April 24, 2012

Dow -102 = - 4

Nasdaq -30 = -2

S&P 500 -12 = -1

Ftse -107 = - 1

Nikkei -19 = -1

Futures -21 = - 2

Market Sentiment -11

The Australian market is set to fall at the open after a poor night offshore.

Monday, April 23, 2012

Dow 65 = 4

Nasdaq -7 = -1

S&P 500 2 = 1

Ftse 28 = 1

Nikkei -27 = -1

Futures 7 = 2

Market Sentiment 6

The Australian market is set to open higher after a positive lead from Wall St

Friday, April 20, 2012

Market Sentiment

Dow -69 = -4

Nasdaq -24 = -1

S&P 500 -8 = -1

Ftse -1 = -1

Nikkei -79 = -1

Futures -3 = -2

Market Sentiment -10

Local stocks look to open little changed following a weaker tone in offshore markets.

Thursday, April 19, 2012

Market Sentiment

Dow -83 = -4

Nasdaq -11 = -1

S&P 500 -6 = -1

Ftse -22 = -1

Nikkei 203 = -1

Futures -6 = - 2

Market Sentiment -10

Local stocks look to follow offshore focus on Spanish debt and its effects on global growth and commodities.

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