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.


Tuesday, April 30, 2013

Market Sentiment


Dow                                          106     =  4

Nasdaq                                       28     =  1

S and P 500                                11    =  1                          

Ftse                                            32     =  1

Nikkei                                    holiday

Futures                                       2      =  2

                                                               

Market Sentiment  9                      

 Local markets are expected to open stronger ahead of a strong rally in US markets overnight. There are growing expectations that the US and EU will be taking additional measures to stimulate growth.

                                                              

Monday, April 29, 2013

Market Sentiment


Dow                                          12     =  2 

Nasdaq                                    -11     = -1

S and P 500                              -3     = -1                          

Ftse                                        -16     =  -1

Nikkei                                    -42     =  -1      

Futures                                   -3     =  -2

                                                               

Market Sentiment  -4                     

 
Local stocks are looking toward a weak open today, on the back of disappointing performance in overseas markets and a disheartening economic report from the US on Friday.

Wednesday, April 24, 2013

Market Sentiment


Dow                                          152     =  4

Nasdaq                                     36      =  2

S and P 500                              16     =  2                          

Ftse                                        126     =  1

Nikkei                                    -39     = -1      

Futures                                   50     =  4

                                                               

Market Sentiment  12                    

 Following a strong finish offshore, local stocks eye early gains as an increased risk appetite is back on cards; this despite poor readings from the Chinese HSBC manufacturing purchasing managers' index and the associated drop in commodity prices.

Tuesday, April 23, 2013

Market Sentiment


Dow                                          20     =  2

Nasdaq                                     27     =  1 

S and P 500                               7     =  1                          

Ftse                                          -6     = -1

Nikkei                                    252     =  1      

Futures                                   13     =  2

                                                               
Market Sentiment  6  
   
Following a relatively flat showing offshore, local stocks look to make cautious gains early in the session. Against the yen, the Australian dollar was dragged higher after the Group of 20 held their collective tongues on Japans reflationary policies.

Monday, April 22, 2013

Market Sentiment


Dow                                          10     =  4

Nasdaq                                     40     =  2 

S and P 500                             14     =  1                          

Ftse                                          43     =  1

Nikkei                                      96     =  1      

Futures                                   11     =  2

                                                               

Market Sentiment  11

Local stocks look to begin the week on a positive note, as US corporate's posted decent results and miners had a strong showing on Friday.

Friday, April 19, 2013

Market Sentiment


Dow                                          -138     = - 4       

Nasdaq                                       -60     = - 2       

S and P 500                               -23     =  -2                          

Ftse                                            13      =   1

Nikkei                                    -163      = - 1      

Futures                                   -12      =  -2

                                                               

Market Sentiment  -10

 Local stocks are looking toward a bleak open today, on the back of losses on Wall Street, concerns about the flagging global economy, ongoing eurozone fears, and a mixed bag of corporate news.

                                                              

Thursday, April 18, 2013

Market Sentiment


Dow                                          -138   = - 4         

Nasdaq                                       -60   = - 2

S and P 500                               -23   =  -2                          

Ftse                                          -60    =  -1

Nikkei                                     161    =   1      

Futures                                   -33   =   -2

                                                               

Market Sentiment  -10
 

 Local markets are looking to a lacklustre start, on the back of the negative finish on Wall Street, commodity price weakness, and fresh euro-zone concerns as fears of a German debt downgrade weigh on investors' minds.

Wednesday, April 17, 2013

Market Sentiment


Dow                                          158   =  4

Nasdaq                                       48   =  2 

S and P 500                               22   =  2                          

Ftse                                          -39   = -1

Nikkei                                     -54    = -1      

Futures                                   -33   = -2

                                                               

Market Sentiment  4

Taking cues from Wall Street and other offshore markets, local markets are looking toward a decidedly higher open today

Tuesday, April 16, 2013

Market Sentiment


Dow                                          -266   = -4

Nasdaq                                       -78   = -2

S and P 500                               -36   = -2                          

Ftse                                            -41   = -1

Nikkei                                     -209    = -1      

Futures                                     -63   = -2

                                                               

Market Sentiment  -12

 
Local stocks will likely continue to plummet amidst poor performance on Wall Street and other overseas markets. Investors have been spooked by lacklustre Chinese economic data and explosions and Boston, and local investors can expect to see the jitters reverberate throughout the ASX in today's trading.

                                                              

Monday, April 15, 2013

Market Sentiment


Dow                                           0   =     0

Nasdaq                                     -5   =    -1

S and P 500                             -5   =    -1                          

Ftse                                         -32  =    -1

Nikkei                                     -64  =    -1      

Futures                                   -19  =   -2

                                                               

Market Sentiment  -6

 Local stocks look to begin the day lower, on the back of commodity price weakness and unfavourable US retail data reported on Friday. Resources companies could feel the most pain, as the shocks of falling gold, oil, and metals prices reverberate throughout the day's trading today.