Think Financial Markets - Excellence In Trading Financial Markets: 2014

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 16, 2014

Market Sentiment

Dow 5 = 2

Nasdaq -24 = -1

S and P 500 -4 = -1

Ftse -36 = -1

Nikkei 98 = 1

ASX200 Futures 7 = 2

Market Sentiment = 2

US Federal Reserve chair offers more guidance on timing of rate hikes, strikes cautious tone.

Tuesday, July 15, 2014

Market Sentiment

Dow 112 = 4

Nasdaq 25 = 1

S and P 500 10 = 1

Ftse 56 = 1

Nikkei 132= 1

ASX200 Futures 22 = 2

Market Sentiment = 10

US markets pushed higher as Citigroup’s positive earnings gave investors a boost.

Monday, July 14, 2014

Market Sentiment

Dow 29 = 2

Nasdaq 19 = 1

S and P 500 3 = 1

Ftse 18 = 1

Nikkei -52= -1

ASX200 Futures 14 = 2

Market Sentiment = 6

Local Markets expected to open flat this morning after a volatile session overseas on Friday.

Friday, July 11, 2014

Market Sentiment

Dow -71 = - 4

Nasdaq -23 = - 1

S and P 500 -8 = - 1

Ftse -46 = -1

Nikkei -86 = -1

ASX200 Futures -16 = -2

Market Sentiment = -10

US stocks pare losses at close but unable to shrug off negativity from European session.European markets fell on fears the weakness in Portugal’s banking system could spread,

Thursday, July 10, 2014

Market Sentiment

Dow 79 = 4

Nasdaq 28 = 1

S and P 500 9 = 1

Ftse -20 = -1

Nikkei -12 = -1

ASX200 Futures 12 = 2

Market Sentiment = 6

Wall Street rebounded from a two-day decline as it was revealed October would likely see the end of QE, while oil prices dipped on improved supply expectations from key Middle East producers.

Wednesday, July 9, 2014

Market Sentiment

Dow -118 = -4

Nasdaq -60 = -2

S and P 500 -14 = -1

Ftse -85 = -1

Nikkei -65 = -1

ASX200 Futures -21 = -2

Market Sentiment = -12

Dow closes below 17,000 points as investors brace for quarterly earnings season.

Tuesday, July 8, 2014

Market Sentiment

Dow -44 = -2

Nasdaq -34 = -2

S and P 500 -8 = -1

Ftse -43 = -1

Nikkei -58 = -1

ASX200 Futures -3 = -2

Market Sentiment = -9

US stocks close lower on profit taking and disappointing German industrial output.

Monday, July 7, 2014

Market Sentiment

Sorry I have not been able to post the daily sentiment recently (comp probs) but will start again tomorrow 8/7
Arthur

Thursday, June 26, 2014

Market Sentiment

Dow 49 = 2

Nasdaq 29 = 1

S and P 500 10 = 1

Ftse -53 = -1

Nikkei -110 = -1

ASX200 Futures 7 = 2

Market Sentiment = 4

Wall Street closed higher despite GDP for the March quarter coming in much worse than expected,

Wednesday, June 25, 2014

Market Sentiment

Dow -119 = -4

Nasdaq -18 = -1

S and P 500 -13 = -1

Ftse -13 = -1

Nikkei 7 = 1

ASX200 Futures -27 = -2

Market Sentiment = -8

US shares sink more than 0.5% on profit-taking push from investors.

Tuesday, June 24, 2014

Market Sentiment

Dow -10 = -2

Nasdaq 1 = 1

S and P 500 -1 = -1

Ftse -25 = -1

Nikkei 20 = 1

ASX200 Futures 6 = 2

Market Sentiment = 0

Weak European PMI figures clouded positive US data and weighed on markets,

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