Think Financial Markets - Excellence In Trading Financial Markets: June 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, June 29, 2012

Market Sentiment

Dow -25 = -2

Nasdaq -26 = -1

S&P 500 -3 = -1

Ftse -31 = -1

Nikkei 144 = 1

Futures -8 = - 2

Market Sentiment -6

Weak economic data out of the US and growing scepticism over the likely hood of the euro zone summit producing tangible results is expected to set a backdrop of negativity to todays open.

Thursday, June 28, 2012

Market Sentiment

Dow 92 = 4

Nasdaq 18 = 1

S&P 500 12 = 1

Ftse 77 = 1

Nikkei 67 = 1

Futures 28 = 2

Market Sentiment 10

Positive news streaming out of the US is expected to buoy the Australian market. However, all eyes will be on the upcoming Euro summit by which investors hope for a tangible outcome to the stubborn debt issues plaguing the region.

Wednesday, June 27, 2012

Market Sentiment

Dow 125 = 4

Nasdaq 18 = 1

S&P 500 6 = 1

Ftse -4 = - 1

Nikkei -71 = - 1

Futures 8 = 2

Market Sentiment 6

The Australian market is expected to follow the positive lead from Wall Street despite the mounting concerns that the upcoming euro zone summit will yield little in terms of answers to the nagging debt problems.

Tuesday, June 26, 2012

Market Sentiment

Dow -138 = - 4

Nasdaq -56 = -2

S&P 500 -21 = -2

Ftse -63 = - 1

Nikkei -64 = - 1

Futures -51 = -4

Market Sentiment -14

The Australian market is expected to open in the red as the global community predict that the euro-zone meeting this week will be fruitless in its search for a solution to the stubborn debt crisis.

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