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

Monday, September 30, 2013

Market Sentiment

Dow -70 = -4

Nasdaq -6 = -1

S and P 500 -7 = -1

Ftse -53 = -1

Nikkei -39 = -1

Futures -13 = -2

Market Sentiment -10

Local Market Expected To Open Lower

Friday, September 27, 2013

Market Sentiment

Dow 55 = 4

Nasdaq 26 = 1

S and P 500 6 = 1

Ftse 14 = 1

Nikkei 179 = 1

Futures 10 = 2

Market Sentiment 10

Local Market Expected To Open Higher

US stocks post modest gains to break losing streak as markets seek to recover from slide off all-time highs.

Thursday, September 26, 2013

Market Sentiment

Dow -61 = -4

Nasdaq -7 = -1

S and P 500 -5 = -1

Ftse -20 = -1

Nikkei -112 = -1

Futures -11 = -2

Market Sentiment -10

Local Markets Set to Open Slightly Down

The US debt ceiling crisis looms large again although it's likely Congress will paper over the cracks and just get on with it; US home sales were good if not exceptional.

Wednesday, September 25, 2013

Market Sentiment

Dow -67 = -4

Nasdaq 3 = 1

S and P 500 -4 = -1

Ftse 14 = 1

Nikkei -10 = -1

Futures -4 = -2

Market Sentiment -6

Local Markets Uncertain Before Wednesday Open

Tuesday, September 24, 2013

Market Sentiment

Dow -50 = -4

Nasdaq -9 = -1

S and P 500 -8 = -1

Ftse -39 = -1

Nikkei -24 = -1

Futures -28 = -2

Market Sentiment -10

Local Markets Set to Follow Global Markets and Open Down

Monday, September 23, 2013

Market Sentiment

Dow -185 = -4

Nasdaq -15 = -1

S and P 500 -12 = -1

Ftse -29 = -1

Nikkei -24 = -1

Futures -23 = -2

Market Sentiment -10

Local Markets Set to Open the Week Down

New Fed speculation arises as the market searches for direction, while euro sceptics strike out in Germany's election.

Friday, September 20, 2013

Market Sentiment

Dow -40 = -2

Nasdaq 6 = 1

S and P 500 -3 = -1

Ftse 67 = 1

Nikkei 261 = 1

Futures -14 = -2

Market Sentiment -2

Local Markets Are Expected To Open Lower

as the market continued to process the Fed's surprise announcement yesterday that it is not going to taper its bond-buying program.

Thursday, September 19, 2013

Market Sentiment

Dow 147 = 4

Nasdaq 38 = 2

S and P 500 21 = 2

Ftse -11 = -1

Nikkei 194 = 1

Futures 61 = 4

Market Sentiment 12

Local Markets Are Set To Open Higher

U.S.stocks jumped in afternoon trading and finished higher after the Federal Open Market Committee announced it is continuing its $85 billion-asset-purchase program, contrary to many economists' beliefs that the Fed would begin to taper the program after the meeting.

Wednesday, September 18, 2013

Market Sentiment

Dow 35 = 2

Nasdaq 28 = 1

S and P 500 7 = 1

Ftse -53 = -1

Nikkei -93 = -1

Futures 6 = 2

Market Sentiment 4

Local Markets Are Expected To Open Higher

Commodities and European stocks were downbeat, but Wall Street shot up as investors eyed the Fed's meeting.

Tuesday, September 17, 2013

Market Sentiment

Dow 110 = 4

Nasdaq -4 = -1

S and P 500 10 = 1

Ftse 39 = 1

Nikkei 17 = 1

Futures -17 = -2

Market Sentiment 4

Local Markets Set To Open Lower

Ahead of the local open SPI futures were 17 points lower at 5,238.

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