Think Financial Markets - Excellence In Trading Financial Markets: November 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, November 30, 2012

Market Sentiment

Dow 37 = 4

Nasdaq 20 = 1

S&P 500 6 = 1

Ftse 67 = 1

Nikkei 93 = 1

Futures 22 = 2

Market Sentiment 10

Australian markets are looking for a strong start today buoyed by positive offshore leads as optimism was growing over the fiscal cliff woes. On the local front, investors can expect market movements from the release of credit data and from AGMs from companies as SPL.

Thursday, November 29, 2012

Market Sentiment

Dow 107 = 4

Nasdaq 24 = 1

S&P 500 11 = 1

Ftse 4 = 1

Nikkei -115 = - 1

Futures 18 = 2

Market Sentiment 8

Local markets are set for a positive start as US politicians were starting to gain traction in addressing their fiscal woes. On the local front, investors can expect to see market movements stemming from ABS expenditure data releases, housing sales news and AGMs from BHP and SEK.

Wednesday, November 28, 2012

Market Sentiment

Dow -89 = -4

Nasdaq -9 = -1

S&P 500 -7 = - 1

Ftse 13 = 1

Nikkei 34 = 1

Futures -15 = - 2

Market Sentiment -6

United States stocks closed weaker, as fiscal cliff worries overshadow encouraging United States economic data and investors shrug off Greece's revised bailout deal.

Tuesday, November 27, 2012

Market Sentiment

Dow -42 = -2

Nasdaq 10 = 2

S&P 500 -3 = - 1

Ftse -32 = - 1

Nikkei 22 = 1

Futures 2 = 2

Market Sentiment 1

United States stocks closed mixed, but mostly lower, as traders watched European officials and the International Monetary Fund push for a deal to keep Greece's bailout program afloat.

Monday, November 26, 2012

Market Sentiment

Dow 173 = 4

Nasdaq 40 = 2

S&P 500 28 = 2

Ftse 28 = 1

Nikkei 144 = 1

Futures 30 = 2

Market Sentiment 12

The local market is expected to open higher on the back of the strong performance by the US and European equity markets

Thursday, November 22, 2012

Market Sentiment

Dow 48 = 2

Nasdaq 10 = 1

S&P 500 3 = 1

Ftse 4 = 1

Nikkei 80 = 1

Futures 25 = 2

Market Sentiment 8

Local stocks look to get a boost from solid gains in US markets before Thanksgiving, however eyes now are on the HSBC Chinese flash PMI, which has the potential to move markets.

Wednesday, November 21, 2012

Market Sentiment

Dow -7 = -2

Nasdaq 1 = 1

S&P 500 1 = 1

Ftse 10 = 1

Nikkei -11 = -1

Futures 0 = 0

Market Sentiment 0

Local stocks are set for flat opening, ignoring positive news events, such as reports of a move toward a ceasefire in the Middle East, encouraging US housing data and a successful Spanish debt auction.

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