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, March 28, 2013

Market Sentiment


Dow                                        -33  =   -2  

Nasdaq                                     4    =   1   

S and P 500                             -1  =   -1                          

Ftse                                         -12  =  -1

Nikkei                                    154  =    1      

Futures                                  -13   =   -2

                                                               

Market Sentiment  -4

 Local stocks are feeling the downward pressure from European woes and look to open lower.

Wednesday, March 27, 2013

Market Sentiment


Dow                                        112  =   4  

Nasdaq                                     17  =   1   

S and P 500                             12  =   1                          

Ftse                                         21  =    1

Nikkei                                   -75   =   -1      

Futures                                  -9   =   -2

                                                               

Market Sentiment  4

 Local stocks look to follow offshore results higher as US durable goods orders figures outpaced expectations. The Australian dollar rose overnight against the euro which has continued to see downwards pressure as a result of the Cyprus solution.

Tuesday, March 26, 2013

Market Sentiment


Dow                                        -64  =  - 4  

Nasdaq                                   -10  =   -1  

S and P 500                             -5  =  - 1                          

Ftse                                        -14  = - 1

Nikkei                                   208 =    1      

Futures                                 -44  =  -2

                                                               

Market Sentiment  -8

 
Local stocks look to follow offshore results significantly lower as markets digest the Cyprus deal and its implications.

Monday, March 25, 2013

Market Sentiment


Dow                                               91  =   4        

Nasdaq                                          22  =   2        

S and P 500                                  11  =   1                          

Ftse                                                 4  =   1

Nikkei                                        -297 =   -1      

Futures                                         24  =  2

                                                               

Market Sentiment  9
 
Local stocks look to have a strong start but will be sensitive to developments out of the small island nation. While the situation looked somewhat more positive over the weekend, there is scope for change at a moment's notice if the bailout package cannot be secured.

Friday, March 22, 2013

Market Sentiment


Dow                                               -90  =  - 4      

Nasdaq                                          -32  =   -2      

S and P 500                                  -13  =   -1                          

Ftse                                               -44  =  -1

Nikkei                                           167 =    1      

Futures                                         -35  =  -2

                                                               

Market Sentiment  -9

 Australian equities are looking for a timid start on the back of the local leadership woes from last night and the drama that is unfolding in Cyprus

Thursday, March 21, 2013

Market Sentiment


Dow                                               56  =   4        

Nasdaq                                          25  =   1        

S and P 500                                  10  =   1                          

Ftse                                               -9  =  -1

Nikkei                                         248 =    1      

Futures                                         21  =  2

                                                               

Market Sentiment  8

 
Australian equities are looking for a stronger start today on the back of some positive news coming out of Europe and some encouraging comments from the Fed, which indicated that unemployment would be on the mend in the US.

Wednesday, March 20, 2013

Market Sentiment


Dow                                               4  =   2

Nasdaq                                         -8  =  -1

S and P 500                                 -4  =   -1                          

Ftse                                            -17  =  -1

Nikkei                                       248  =   1      

Futures                                     -25  =  -2

                                                               

Market Sentiment  -2

 
Local markets are set for a weaker start as investors are still digesting the full ramifications of the Cyprus bailout.
                                                              

Tuesday, March 19, 2013

Market Sentiment


Dow                                          -62  =   -4

Nasdaq                                      -11  =  -1

S and P 500                                -3  =   -1                          

Ftse                                           -32  =  -1

Nikkei                                      -340 =  -1      

Futures                                     37  =    2

                                                               

Market Sentiment  -6

 
Local markets are looking for a timid start as the Eurozone's issues rose to the forefront once more. Europe's decision to impose such a levy has been labelled reckless and uncalculated. Such actions could force a run on the banks in other debt laden countries. However, futures markets are pointing to a bounce back in domestic equities, indicating that sentiment could be more resilient than once thought.

                                                              

Monday, March 18, 2013

Market Sentiment


Dow                                          -25  =   -2

Nasdaq                                      -10  =  -1

S and P 500                                -3  =   -1                          

Ftse                                           -40  =  -1

Nikkei                                      180  =    1      

Futures                                     -23  =  -2

                                                               

Market Sentiment  -6

 Local Markets are set to open lower on the back of Eurozone jitters and a poor lead from the US. On the domestic front, the market will have new gauges of Australian economic activity as the ABS looks to release motor vehicle sales and lending finance for the first two months of the year.

Friday, March 1, 2013

Market Sentiment


Dow                                          -21  =   -2

Nasdaq                                       -2  =   -2

S and P 500                                -1  =   -1                          

Ftse                                            35  =    1

Nikkei                                      305  =    1      

Futures                                     -12  =  -2

                                                               

Market Sentiment  -5
 
Local stocks look to consolidate recent gains, after closing Thursday at new four-and-a-half-year highs. Official reports released yesterday showed private capital expenditure in the country fell to a seasonally adjusted rate of -1.2% in the fourth quarter from 1.1% in the third quarter. That raised the possibility the central bank would cut slash interest rates at its meeting next week. Local new Home Sales posted a 4.2% gain on a Month-on-Month basis.