Think Financial Markets - Excellence In Trading Financial Markets: July 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.

Wednesday, July 31, 2013

Market Sentiment

Dow -1 = -2

Nasdaq 17 = 1

S and P 500 1 = 1

Ftse 11 = 1

Nikkei 209 = 1

Futures 7 = 2

Market Sentiment 4

Local Markets expect a steady open after the S&P/Case-Shiller index of home prices showed prices in the 20 largest US cities increased 2.4 per cent in May compared with April, and were up a better-than-expected 12.2 per cent from May 2012.

Tuesday, July 30, 2013

Market Sentiment

Dow -37 = -2

Nasdaq -14 = -1

S and P 500 -6 = -1

Ftse 5 = 1

Nikkei -469 = -1

Futures 5 = 2

Market Sentiment -2

Local Markets Set for Uncertain Start

US markets close lower as Investors await economic data, latest US Federal Reserve policy meeting.

Monday, July 29, 2013

Market Sentiment

Dow 3 = 2

Nasdaq 1 = 1

S and P 500 8 = 1

Ftse -33 = -1

Nikkei -433 = -1

Futures 8 = 2

Market Sentiment 4

Local Markets Hoping for Stable Start to Week

All eyes are on the US this week, where weaker GDP figures are expected to temper strong jobs data.

Friday, July 26, 2013

Market Sentiment

Dow 13 = 2

Nasdaq 26 = 0

S and P 500 4 = 1

Ftse -32 = -1

Nikkei -168 = -1

Futures 1 = -2

Market Sentiment -1

Local Markets Looking at a Flat Start

U.S stocks close higher as corporate earnings, data offer mixed economic outlook

Thursday, July 25, 2013

Market Sentiment

Dow -25 = -2

Nasdaq 0 = 0

S and P 500 -6 = -1

Ftse 23 = 1

Nikkei -47 = -1

Futures 6 = 2

Market Sentiment -1

Local Markets Looking for a Mixed Start

US stocks trade mostly lower as earnings offer uncertain economic outlook

Wednesday, July 24, 2013

Market Sentiment

Dow 22 = 2

Nasdaq -21 = -1

S and P 500 -3 = -1

Ftse -26 = -1

Nikkei 120 = 1

Futures 3 = 2

Market Sentiment 2

Flat Start for Australian Equities

United States stocks close mixed as weak manufacturing data overshadows mostly upbeat earnings, Chinese stimulus hopes.

Tuesday, July 23, 2013

Market Sentiment

Dow 2 = 2

Nasdaq 13 = 1

S and P 500 3 = 1

Ftse -7 = -1

Nikkei 68 = 1

Futures 14 = 2

Market Sentiment 6

Local Markets Looking to Open Higher

US stocks gain as uneven earnings provide uncertain view of economic growth, US housing data disappoints investors.

Monday, July 22, 2013

Market Sentiment

Dow -5 = -2

Nasdaq -24 = -1

S and P 500 3 = 1

Ftse -4 = -1

Nikkei -219 = - 1

Futures 21 = 2

Market Sentiment -2

Local Markets to Open Higher

Ahead of the local open, SPI futures were up 21 points to 4,963.

Friday, July 19, 2013

Market Sentiment

Dow 78 = 4

Nasdaq 1 = 1

S and P 500 8 = 1

Ftse 62 = 1

Nikkei 193 = 1

Futures 25 = 2

Market Sentiment 10

Local Markets Hopeful of Gains Following Global Trend

Ahead of the local open, SPI futures were up 20 points to 4,972.

Local Markets Hopeful of Gains Following Global Trend

Ahead of the local open, SPI futures were up 20 points to 4,972.

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