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, January 31, 2013

Market Sentiment


Dow                                          -44    =    -2        

Nasdaq                                     -11    =     -1

S&P 500                                    -6    =     -1

Ftse                                           -16    =   -1       

Nikkei                                       247   =     1      

Futures                                      -3   =     -2

                                                               
Market Sentiment  -6   
          
Local bourses look to have a flat open after mixed data and results offshore, despite added another couple of points to already multi-year highs yesterday. 
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Wednesday, January 30, 2013

Market Sentiment


Dow                                          72    =     4         

Nasdaq                                     -1    =     -1

S&P 500                                    8    =      1

Ftse                                           45    =    1       

Nikkei                                       42   =     1      

Futures                                      3   =      2

                                                               

Market Sentiment  8                              

 
Local bourses look to have a cautious open despite US markets reaching 5 year highs overnight.
 
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Tuesday, January 29, 2013

Market Sentiment


Dow                                          -14    =  - 2         

Nasdaq                                        5    =     1

S&P 500                                    -3    =   -1

Ftse                                           10    =    1       

Nikkei                                     -102   =    -1      

Futures                                      -3   =  - 2

                                                               

Market Sentiment  -3         
                    
Local bourses look to open relatively flat after a mixed night overseas. The Australian dollar has slid to near four-week lows overnight, dragged by weakness in Asian currencies. Investors will be looking out for the Australian business confidence reading on Tuesday.
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Friday, January 25, 2013

Market Sentiment



Dow                                          45   =   2

Nasdaq                                    -23   = - 1

S&P 500                                    0    =   0

Ftse                                           67   =  1       

Nikkei                                     134   =  1      

Futures                                     16   =  2

                                                               

Market Sentiment  5                              


Australian shares look toward a higher open on optimistic jobs data, despite disappointing results from tech giant Apple, which lost 10% in the overnight US trading session.
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Thursday, January 24, 2013

Market Sentiment


Dow                                          67   =  4  

Nasdaq                                     10   =  1

S&P 500                                    2    =  1

Ftse                                           18   =  1       

Nikkei                                    -223   = -1      

Futures                                     11   =  2

                                                               

Market Sentiment  8         
                     
The earnings season was in full flight in the US as the big guns decided to roll out their much anticipated results. IBM, Google and McDonald's all reported fourth quarter results all of which impressed the market. Locally, investors can expect movements from HSBC's flash manufacturing PMI, which should offer a glimpse at China's economic health so far.
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Wednesday, January 23, 2013

Market Sentiment


Dow                                          62  =  4   

Nasdaq                                       8  =  1

S&P 500                                    7  =   1

Ftse                                           -2  = -1       

Nikkei                                    -38   = -1      

Futures                                     8   =  2

                                                               

Market Sentiment  6                              

 The strong start from Wall Street will be on the back of investors' minds as the market looks towards some key data points due to be released today. This means that Australian equities are looking for mixed start as investors cautiously wait on the sidelines ahead of the news releases, which include the latest CPI numbers as well as Westpac's Leading Indexes of economic activity and CBA's latest reading of business sales.

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Tuesday, January 22, 2013

Market Sentiment


Dow                                          holiday    

Nasdaq                                     holiday

S&P 500                                    holiday           

Ftse                                           27     =   1       

Nikkei                                    -166    =  - 1      

Futures                                    -3     =   -2

                                                               

Market Sentiment  -2                             

Australian equities are looking for a mixed start as the US markets were closed in observance of a public holiday. Despite this, investors can look to the UK/European markets for inspiration as they clocked in multi year highs.  
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Monday, January 21, 2013

Market Sentiment


Dow                                          54     =    4         

Nasdaq                                     -1     =   -1

S&P 500                                    5      =   1        

Ftse                                           22     =   1       

Nikkei                                     304     =   1      

Futures                                    17     =   2

                                                               

Market Sentiment  8      
                Local equities are expected to follow the lead of overseas markets and open higher. Inflation figures will be the focus for the week, as investors eagerly await the numbers which are due Wednesday. The underlying CPI is expected to be at 2.5%, a rise of 0.6%.
        

 
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Friday, January 18, 2013

Market Sentiment


Dow                                          85     =    4         

Nasdaq                                     18     =    1

S&P 500                                    8      =   1        

Ftse                                           28     =   1       

Nikkei                                         9     =   1      

Futures                                     36     =   2

                                                               
Market Sentiment  10   
          
Local bourses look to open significantly higher, following a strong showing in US markets overnight. Investors will be carefully examining a deluge of Chinese data expected to be released around 1pm today. Figures released include GDP data for the fourth quarter of 2012, industrial production of December, retail sales for December and property prices.
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