Think Financial Markets - Excellence In Trading Financial Markets: June 2013

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, June 28, 2013

Market Sentiment

Dow 114 = 4

Nasdaq 26 = 1

S and P 500 10 = 2

Ftse 78 = 1

Nikkei 380 = 1

Futures 20 = 2

Market Sentiment 11

Stocks should open higher this morning after economic data and comments from two Fed Bank Presidents. Atlanta Fed President Dennis Lockhart and New York Fed head William Dudley both said today that Fed policy would remain accommodative for a long time and that the market is overestimated the possibility of an imminent tightening.

Thursday, June 27, 2013

Market Sentiment

Dow 150 = 4

Nasdaq 28 = 1

S and P 500 15 = 2

Ftse 64 = 1

Nikkei -135 = -1

Futures 20 = 2

Market Sentiment 9

Local Markets Looking to Open Higher

Ahead of the local open SPI futures were 20 points higher at 4,724.

Wednesday, June 26, 2013

Market Sentiment

Dow 101 = 4

Nasdaq 27 = 1

S and P 500 15 = 2

Ftse 73 = 1

Nikkei -93 = -1

Futures 26 = 2

Market Sentiment 9

Tuesday 25 June - Local markets managed to take the dire negative leads from Wall Street and the futures markets this morning in stride to finish the day only moderately lower. The trading day was marked by more jitters about the Chinese slowdown, so it was no surprise that materials led the falls, followed closely by energy. The top gainers were mostly defensives like consumer staples, health and telecommunications.

Monday, June 24, 2013

Market Sentiment

Dow 41 = 2

Nasdaq -7 = - 1

S and P 500 5 = 1

Ftse -43 = - 1

Nikkei 215 = 1

Futures 5 = 2

Market Sentiment 4

Local Markets Looking to Start Stronger

Ahead of the local open SPI futures were 5 points higher at 4,748.

Friday, June 21, 2013

Market Sentiment

Dow -354 = - 4

Nasdaq -79 = - 2

S and P 500 -41 = - 2

Ftse -189 = - 1

Nikkei -231 = - 1

Futures -81 = -4

Market Sentiment -14

Australian equities are expected to have another heavy day of losses on the back of a global sell-off of shares. Recent Federal Reserve announcements and disappointing Chinese economic data have put a serious damper on investor confidence, resulting in significant losses in equity markets globally.

Thursday, June 20, 2013

Market Sentiment

Dow -206 = - 4

Nasdaq -39 = - 2

S and P 500 -23 = - 2

Ftse -25 = - 1

Nikkei 238 = 1

Futures -55 = -4

Market Sentiment -12

Australian markets are expected to follow the trend set by global markets and open weaker as investor confidence takes a hit following comments from Fed chairman Ben Bernanke. The Fed intends to pull back on its bond-buying program if the US economy continues to recover at the current rate.

Wednesday, June 19, 2013

Market Sentiment

Dow 138 = 4

Nasdaq 30 = 2

S and P 500 13 = 1

Ftse 44 = 1

Nikkei -26 = -1

Futures 30 = 2

Market Sentiment 9

Australian markets are expected to follow US equities and rise in early trade, as investor fears that the Federal Reserve will reduce its monetary support of the world's largest economy are eased.

Tuesday, June 18, 2013

Market Sentiment

Dow 110 = 4

Nasdaq 29 = 2

S and P 500 12 = 2

Ftse 22 = 1

Nikkei 347 = 1

Futures 8 = 2

Market Sentiment 12

Australian stocks are expected to follow the trend of global markets and open modestly higher as investors are hopeful of the Federal Reserve reinforcing their commitment to the US economy at the Federal Open Market Committee's two-day policy meeting beginning on Tuesday.

Monday, June 17, 2013

Market Sentiment

Dow -106 = - 4

Nasdaq -22 = - 2

S and P 500 -10 = - 2

Ftse 4 = 1

Nikkei 241 = -1

Futures -26 = -2

Market Sentiment -10

Local markets are looking at a timid start on the back of a negative session from Wall Street over the weekend.

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