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

Thursday, October 31, 2013

Market Sentiment

Dow -62 = - 4

Nasdaq -22 = - 1

S and P 500 -9 = -1

Ftse 3 = 1

Nikkei 176 = 1

Futures -15 = -2

Market Sentiment -6

Local Markets Set To Open Lower

US stocks close lower after Federal Reserve offers surprisingly optimistic assessment of economy, maintains bond-buying program.

Wednesday, October 30, 2013

Market Sentiment

Dow 111 = 4

Nasdaq 12 = 1

S and P 500 10 = 1

Ftse 49 = 1

Nikkei -70 = -1

Futures 26 = 2

Market Sentiment 8

Local Markets Set To Open Higher

US stocks close higher as S&P 500, Dow hit fresh all-time highs ahead of crucial Federal Reserve meeting.

Tuesday, October 29, 2013

Market Sentiment

Dow -1 = -2

Nasdaq -3 = - 1

S and P 500 2 = 1

Ftse 4 = 1

Nikkei 308 = 1

Futures 4 = 2

Market Sentiment 2

Local Markets Set To Open Higher

US stocks close mixed, but S&P inches up to set fresh record, as investors digest data, earnings ahead of Fed meeting.

Monday, October 28, 2013

Market Sentiment

Dow 96 = 4

Nasdaq 22 = 1

S and P 500 6 = 1

Ftse 39 = 1

Nikkei 60 = 1

Futures 7 = 2

Market Sentiment 10

Aust stocks set to open higher

Local market expected to continue to push upward in early trade on the back of strong Wall St lead and lifts in gold, oil prices.

Monday, October 21, 2013

MARKET SENTIMENT

Dow 28 = 2

Nasdaq 51 = 2

S and P 500 11 = 1

Ftse 46 = 1

Nikkei -24 = -1

Futures 30 = 2

Market Sentiment 7

Friday, October 18, 2013

Market Sentiment

Dow -2 = -2

Nasdaq 24 = 1

S and P 500 12 = 1

Ftse 5 = 1

Nikkei 119 = 1

Futures 30 = 2

Market Sentiment 4

U.S. stocks were mostly higher on Thursday after the market digested earnings and the deal to reopen the US government and lift the debt ceiling.

Thursday, October 17, 2013

Market Sentiment

Dow 206 = 4

Nasdaq 45 = 2

S and P 500 23 = 2

Ftse 22 = 1

Nikkei 26 = 1

Futures 20 = 2

Market Sentiment 12

Local Markets Are Expected To Open Higher

Last-minute deal puts US on track to end stalemate, reopen government, but long-term solution remains unclear.

Wednesday, October 16, 2013

Market Sentiment

Dow -133 = - 4

Nasdaq -21 = -1

S and P 500 -12 = -1

Ftse 41 = 1

Nikkei 37 = 1

Futures 16 = 2

Market Sentiment -2

Local Markets Set to Open Down

US stocks slipped overnight – but not enough to push Washington to a deal – while the Reserve Bank's minutes were hard to interpret.

Tuesday, October 15, 2013

Market Sentiment

Dow 64 = 4

Nasdaq 23 = 1

S and P 500 7 = 1

Ftse 20 = 1

Nikkei 210 = 1

Futures 43 = 2

Market Sentiment 10

Local Market Set To Open Higher

US stocks rose, despite some volatility, as tentative moves were made towards an end to the Washington impasse.

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