Think Financial Markets - Excellence In Trading Financial Markets: August 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, August 30, 2013

Market Sentiment

Dow 16 = 2

Nasdaq 27 = 1

S and P 500 3 = 1

Ftse 53 = 1

Nikkei 121 = 1

Futures -10 = -2

Market Sentiment 4

Local Markets Are Expected To Open Lower

U.S.Markets rise after a positive reading on US economic growth and as the threat of imminent action against Syria subsides.

Thursday, August 29, 2013

Market Sentiment

Dow 48 = 2

Nasdaq 15 = 1

S and P 500 4 = 1

Ftse -11 = -1

Nikkei -204 = -1

Futures 1 = 2

Market Sentiment 4

Local Markets Are Expected To Open Higher

U.S.stocks recovered from Tuesday's sluggish session and finished Wednesday higher as continuing worries about US intervention in Syria along with disappointing housing data had investors speculating that the Fed would postpone the expected tapering of its bond-buying program

Wednesday, August 28, 2013

Market Sentiment

Dow -170 = -4

Nasdaq -79 = -2

S and P 500 -26 = -2

Ftse -51 = -1

Nikkei -94 = -1

Futures -28 = -2

Market Sentiment -12

Local Markets Are Expected To Open Lower

Overseas Stocks ended in the red on Tuesday following worries of a possible US intervention in Syria, which led investors to allocate their assets to the perceived safety of bonds

Tuesday, August 27, 2013

Market Sentiment

Dow -64 = -4

Nasdaq 0 = 0

S and P 500 -7 = -1

Ftse 45 = 1

Nikkei -24 = -1

Futures -28 = -2

Market Sentiment -7

Local Markets Set for Shaky Start

Ahead of the local open, SPI futures were down 28 points to 5,121.

Monday, August 26, 2013

Market Sentiment

Dow 47 = 2

Nasdaq 19 = 1

S and P 500 7 = 1

Ftse 45 = 1

Nikkei 295 = 1

Futures 22 = 2

Market Sentiment 8

Local Markets Hopeful of Positive Start to Week

The Australian stock market looks set to open higher following gains on Wall Street which enjoyed a jolt from Microsoft's announcement that chief executive Steve Ballmer will retire within the next 12 months.

Friday, August 23, 2013

Market Sentiment

Dow 66 = 4

Nasdaq 39 = 2

S and P 500 14 = 1

Ftse 56 = 1

Nikkei -59 = -1

Futures 41 = 2

Market Sentiment 9

Local Markets Expectant of Positive Finish to Week

Traders shake off Nasdaq trading halt as shares get boost from strong United States, China, eurozone data.

Thursday, August 22, 2013

Market Sentiment

Dow -105 = -4

Nasdaq -14 = -1

S and P 500 -10 = -1

Ftse -63 = -1

Nikkei 28 = 1

Futures - 41 = -2

Market Sentiment -8

Local Markets Lacking Confidence before Opening

US stocks close lower as investors struggle to find direction from Federal Reserve minutes.

Wednesday, August 21, 2013

Market Sentiment

Dow -8 = -2

Nasdaq 25 = 1

S and P 500 6 = 1

Ftse -12 = -1

Nikkei -362 = -1

Futures 13 = 2

Market Sentiment 0

Local Markets Hopeful of Positive Start

US stocks mostly bounce back from recent losses to close higher as investors await release of Fed minutes.

Tuesday, August 20, 2013

Market Sentiment

Dow -71 = -4

Nasdaq -14 = -1

S and P 500 -10 = -1

Ftse -34 = -1

Nikkei 108 = 1

Futures -17 = -2

Market Sentiment -8

Local Markets Set for Negative Start

Ahead of the local open, SPI futures were down 17 points to 5,089.

Monday, August 19, 2013

Market Sentiment

Dow -31 = -2

Nasdaq -3 = -1

S and P 500 -5 = -1

Ftse 17 = 1

Nikkei -103 = -1

Futures -7 = -2

Market Sentiment -6

Local Markets Set for Uncertain Start to Week

Last week saw the biggest drop in US stocks for the year whilst Europe saw some modest gains. Volumes this week are expected to be thin.

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