Think Financial Markets - Excellence In Trading Financial Markets: November 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, November 15, 2013

Market Sentiment

Dow 55 = 4

Nasdaq 7 = 2

S and P 500 9 = 1

Ftse 36 = 1

Nikkei 309 = 1

Futures 8 = 2

Market Sentiment 11

Local Markets Expected To Open Higher

Ahead of the local open, SPI futures were 8 points higher at 5,373.

Thursday, November 14, 2013

Market Sentiment

Dow 71 = 4

Nasdaq 46 = 2

S and P 500 14 = 1

Ftse -97 = -1

Nikkei -22 = -1

Futures 10 = 2

Market Sentiment 7

Local Markets Expected To Open Higher

US stocks turn higher as investors look forward to guidance from incoming Federal Reserve boss Janet Yellen on stimulus.

Wednesday, November 13, 2013

Market Sentiment

Dow -32 = - 2

Nasdaq 0 = 0

S and P 500 -4 = -1

Ftse -2 = -1

Nikkei 319 = 1

Futures -16 = -2

Market Sentiment -5

Local market expected to open lower as renewed fear of tapering emerges from the US

Tuesday, November 12, 2013

Market Sentiment

Dow 21 = 2

Nasdaq 3 = 1

S and P 500 1 = 1

Ftse 20 = 1

Nikkei 183 = 1

Futures 24 = 2

Market Sentiment 8

The ASX market is looking to open higher today, with the 5450 level key near-term, as markets traded higher across Europe and the US markets held at all-time highs again.

Monday, November 11, 2013

Market Sentiment

Dow 168 = 4

Nasdaq 62 = 2

S and P 500 23 = 2

Ftse 11 = 1

Nikkei -142 = -1

Futures 55 = 4

Market Sentiment 13

The Australian stock market looks set to open higher after Wall Street's strong gains following better-than-expected United States jobs figures.

Friday, November 8, 2013

Market Sentiment

Dow -152 = -4

Nasdaq -75 = -2

S and P 500 -24 = - 2

Ftse -44 = -1

Nikkei -109 = -1

Futures - 25 = -2

Market Sentiment -12

Local Markets Pessimistic Before Friday Open

Ahead of the local open, SPI futures were down 25 points to 5,404.

Thursday, November 7, 2013

Market Sentiment

Dow 129 = 4

Nasdaq -8 = -1

S and P 500 8 = 1

Ftse -5 = -1

Nikkei 112 = 1

Futures 11 = 2

Market Sentiment 6

Local Markets Set to Open Slightly Up

US stocks build momentum, eye Federal Reserve stimulus direction as Dow, S&P flirt with fresh highs.

Wednesday, November 6, 2013

Market Sentiment

Dow -21 = -2

Nasdaq 3 = 1

S and P 500 -5 = -1

Ftse -17 = -1

Nikkei 24 = 1

Futures 1 = 2

Market Sentiment 0

Local Markets Uncertain Before Wednesday Open

Tuesday, November 5, 2013

Market Sentiment

Dow 14 = 2

Nasdaq 12 = 1

S and P 500 5 = 1

Ftse 29 = 1

Nikkei -126 = -1

Futures 9 = 2

Market Sentiment 6

Local Markets Set to Open Slightly Up

US stocks pare gains, but close in positive territory, as investors digest US, eurozone, Chinese economic data.

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