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.


Friday, May 31, 2013

Market Sentiment


Dow                                       22     =   2

Nasdaq                                  24     =   1   

S and P 500                            6     =    1                        

Ftse                                       30     =    1

Nikkei                                -737     =  - 1 

Futures                                 19     =    2     

                                                               

Market Sentiment 6                       

 
Despite a poor showing from US economic data overnight, US stocks managed to eke out a gain. This will set a good tone for the Aussie session, and all indicators are pointing for a more positive start.
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Thursday, May 30, 2013

Market Sentiment


Dow                                    -107     =  - 4

Nasdaq                                 -21     =   -1 

S and P 500                          -12     =  - 1                         

Ftse                                      -135     =  - 1

Nikkei                                     14     =    1 

Futures                                 -22     =  -2    

                                                               

Market Sentiment -7                      

 
Australian equities are looking to open lower on the back of the comments from Boston Fed president, Eric Rosengren. Closer to home, the ABS will be releasing building approvals for the month of April.

                                                              
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Wednesday, May 29, 2013

Market Sentiment


Dow                                    106     =   4

Nasdaq                                 30     =   2    

S and P 500                          10     =   1                         

Ftse                                      42     =    1

Nikkei                                 169    =    1 

Futures                                 -1     =  -2

                                                               

Market Sentiment  7             
          Australian stocks are looking at a mixed start despite a positive session in the US overnight. Closer to home, there will be a whole host of economic data being released today.

 
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Tuesday, May 28, 2013

Market Sentiment


Dow                                                0     =   0

Nasdaq                                           0     =   0      

S and P 500                                  0      =    0                         

Ftse                                             -42     =  -1

Nikkei                                        -470    =  -1 

Futures                                       -13     =  -2

                                                               

Market Sentiment  -4          
           
Local stocks are looking for a mixed start despite a positive lead from the European markets overnight. Concerns over a slowing Chinese economy are still weighing on investors' minds.


 
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Monday, May 27, 2013

Market Sentiment


Dow                                                9     =   2      

Nasdaq                                           0     =   0      

S and P 500                                  -1      = -1                         

Ftse                                             -42      =  -1

Nikkei                                        128      =   1 

Futures                                        -6      =  -2

                                                               

Market Sentiment  -1                     

 Australian equities are looking for a timid start on the back of a mixed day in the US on Friday.
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Friday, May 24, 2013

Market Sentiment


Dow                                              -13   = -2        

Nasdaq                                          -4    = -1        

S and P 500                                  -5    = -1                         

Ftse                                           -143   =  -1

Nikkei                                      -1143   = -1 

Futures                                        16   =  2

                                                               

Market Sentiment  -4                     

 
Local markets are looking for a mixed start despite soft leads from Wall Street overnight.
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Thursday, May 23, 2013

Market Sentiment


Dow                                              -80   = -4        

Nasdaq                                         -39   = -2        

S and P 500                                 -14   = -1                         

Ftse                                               36   =  1

Nikkei                                          246   = 1 

Futures                                        -20   =-2

                                                               

Market Sentiment  -7                     

 Australian shares are looking to open lower on the back of recent comments from the Fed, indicating that they would be ready to pare back the asset purchasing program.

                                                              
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Wednesday, May 22, 2013

Market Sentiment


Dow                                              52   = 4

Nasdaq                                           6   = 1

S and P 500                                    3   = 1                         

Ftse                                               48   = 1

Nikkei                                           20   = 1 

Futures                                          -5  = 2

                                                               

Market Sentiment  6                      

 
Local markets are looking for a cautious start despite a strong lead from Wall Street overnight.
                                                              
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Tuesday, May 21, 2013

Market Sentiment


Dow                                             -19   = -2         

Nasdaq                                          -3   = -1

S and P 500                                  -1    = -1                         

Ftse                                               33    = 1

Nikkei                                         223    = 1 

Futures                                          7   =  2

                                                               

Market Sentiment  0                      

 Local markets are expected to open higher on the back of a strong run from European markets overnight.
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Monday, May 20, 2013

Market Sentiment


Dow                                             121   = 4

Nasdaq                                          34   = 2

S and P 500                                  17    = 2                         

Ftse                                               35    = 1

Nikkei                                         101    = 1 

Futures                                         19   =  2

                                                               

Market Sentiment  12                    

 
Australian equities are looking for strong gains on the back of another stellar run by Wall Street on Friday. Miners, however, are expected to continue their losing streak ahead of further falls in commodity prices.

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