Think Financial Markets - Excellence In Trading Financial Markets

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.


Thursday, December 19, 2013

Market Sentiment

Dow                                          293  =  4

Nasdaq                                      46  =   2

S and P 500                              30  =   2             

Ftse                                            6   =   1     

Nikkei                                     309 =    1    

ASX200 Futures                      45  =   2

                                                                           

Market Sentiment  12
 
Local Markets Expected To Open Higher
Central bank says economy has gathered enough momentum to handle $10bn reduction in stimulus

Wednesday, December 18, 2013

Market Sentiment


 
 
 
 
 
Dow                                           -9  =   -2
Nasdaq                                      -6  =  - 1
S and P 500                              -6  =   -1             
Ftse                                         -36  =  -1     
Nikkei                                     126 =    1    
ASX200 Futures                       4  =    2
                                                                           
Market Sentiment  -2 
                                                              
Wall Street edged lower ahead of the Fed's taper decision, while positive German data failed to quell a European sell-off.
 

 
 

 

                                                              

Tuesday, December 17, 2013

Market Sentiment


Dow                                         129  =   4

Nasdaq                                      29  =   1

S and P 500                              11  =   1             

Ftse                                           82  =  1      

Nikkei                                   -250  = -1 

ASX200 Futures                     36  =  2

                                                                           

Market Sentiment  8

Local Markets Expected To Open Higher
U.S. stocks ended higher on Monday after the release of upbeat manufacturing data

Monday, December 16, 2013

Market Sentiment


Dow                                           16  =   2

Nasdaq                                        3  =   1

S and P 500                                0  =   0             

Ftse                                           -5  =  -1     

Nikkei                                       61  =   1    

ASX200 Futures                     -15  =  -2

                                                                           

Market Sentiment  1 

Local Markets Expected To Open Lower
The Australian stock market looks set to open lower despite Wall Street showing mostly small gains after the US House of Representatives approved a budget deal.

Friday, December 13, 2013

Market Sentiment


Dow                                           -104  =  -4

Nasdaq                                          -5  =  -2

S and P 500                                  -7  =  -2             

Ftse                                             -62  =  -1

Nikkei                                       -173  =  -1          

ASX200 Futures                        -12  =  -2

                                                                           

Market Sentiment  -12


Local Markets Expected To Open Lower
U.S. stocks closed lower on Thursday as investors weighed decent economic data against the possibility of the Federal Reserve beginning to taper its quantitative-easing programs

 

Thursday, December 12, 2013

Market Sentiment


Dow                                           -144  =  -4

Nasdaq                                        -61  =  -2

S and P 500                                -22  =  -2             

Ftse                                             -16  =  -1

Nikkei                                         -96  =  -1          

ASX200 Futures                        -25  =  -2

                                                                           

Market Sentiment  -12
Local Markets Expected To Open Lower
 
Bipartisan budget proposal boosts fears of imminent US Fed taper.


 

Wednesday, December 11, 2013

Market Sentiment


Dow                                           -52  = -4

Nasdaq                                      -6  =  -1

S and P 500                              -8  =  -1             

Ftse                                          -36 = - 1     

Nikkei                                      -39  = -1    

ASX200 Futures                    -36  = -2

                                                                           

Market Sentiment  -10
 

Local Markets Set To Open Lower
Wall Street was flat overnight as positive US data increased expectations of an impending taper, although bond and gold moves may suggest otherwise.


 

Tuesday, December 10, 2013

Market Sentiment


Dow                                           5  =  2

Nasdaq                                      6  =  1

S and P 500                              3  =  1             

Ftse                                          7  =   1        

Nikkei                                  350  =  1    

ASX200 Futures                    -3  = -2

                                                                           

Market Sentiment  4
 

Local Markets Expected To Open Flat

 

                                                              

Monday, December 9, 2013

Market Sentiment


Dow                                           199  =  4

Nasdaq                                        29  =  1

S and P 500                                20   = 2             

Ftse                                             54  =  1    

Nikkei                                       122  =  1 

ASX200 Futures                        25   = 2

                                                                           

Market Sentiment  11

 

Friday, December 6, 2013

Market Sentiment


Dow                                           -68  =  -4

Nasdaq                                        -5  =  -1

S and P 500                                -8   = -1             

Ftse                                           -12   = -1   

Nikkei                                     -230   = -1 

ASX200 Futures                      -25   = -2

                                                                           

Market Sentiment  -10
 

US stocks were mostly lower this morning after some better-than-expected economic data raised fears of an imminent taper of the Federal Reserves' bond-buying program