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

Friday, January 31, 2014

Market Sentiment

Dow 110 = 4

Nasdaq 72 = 2

S and P 500 20 = 2

Ftse -6 = -1

Nikkei -377 = -1

ASX200 Futures 19 = 2

Market Sentiment = 8

US stocks rebounded Thursday as investors focused more on strong corporate earnings from tech companies and healthy economic data as opposed to continuing tumult in emerging markets.

Thursday, January 30, 2014

Market Sentiment

Dow -190 = -4

Nasdaq -47 = -1

S and P 500 -18 = - 1

Ftse -28 = - 1

Nikkei -404 = -1

ASX200 Futures -66 = -4

Market Sentiment = -12

Local Market Expected To Open Lower

US selling was focused around emerging markets as the Fed’s taper seemed a sign of things to come.

Wednesday, January 29, 2014

Market Sentiment

Dow 91 = 4

Nasdaq 14 = 1

S and P 500 11 = 1

Ftse 22 = 1

Nikkei -26 = -1

ASX200 Futures -2 = -2

Market Sentiment = 4

Local Market Set To Open Flat

US stocks climb despite mixed data, weak update from tech giant Apple.

Tuesday, January 28, 2014

Market Sentiment

Dow -41 = -2

Nasdaq -45 = -2

S and P 500 -9 = - 1

Ftse -113 = -1

Nikkei -386 = -1

ASX200 Futures -26 = -2

Market Sentiment = -9

Local Markets Expected To Open Lower

US stocks fail to find direction; hurt by weak housing data, Fed taper fears.

US stocks fail to find direction; hurt by weak housing data, Fed taper fears.

Friday, January 24, 2014

Market Serntiment

Dow -176 = -4

Nasdaq -24 = -2

S and P 500 -16 = - 2

Ftse -53 = -1

Nikkei -125 = -1

ASX200 Futures -38 = -2

Market Sentiment = -12

Local Markets Set To Open Lower

US stocks fall 1% as soft China data, mixed earnings results weigh.

Thursday, January 23, 2014

Market Sentiment

Dow -41 = -4

Nasdaq 17 = 1

S and P 500 1 = 1

Ftse -8 = -1

Nikkei 25 = 1

ASX200 Futures -21 =-2

Market Sentiment = -4

Local Market Set To Open Lower

Ahead of the local open, SPI futures were 21 points lower at 5,259.

Wednesday, January 22, 2014

Market Sentiment

Dow -46 = -4

Nasdaq 28 = 1

S and P 500 5 = 1

Ftse -2 = -1

Nikkei 154 = 1

ASX200 Futures -7 = -2

Market Sentiment = -4

Local Market Set To Open Lower

US stocks fail to overcome fears of taper despite strong earnings, lift in IMF forecast.

Tuesday, January 21, 2014

Market Sentiment

Dow CLOSED

Nasdaq CLOSED

S and P 500 CLOSED

Ftse 7 = 1

Nikkei -93 = -1

ASX200 Futures -7 = -2

Market Sentiment = -2

U.S. markets were closed on Monday in commemoration of Martin Luther King Jr. Day

Monday, January 20, 2014

Market Sentiment

Dow 42 = 4

Nasdaq -21 = -1

S and P 500 -7 = -1

Ftse 14 = 1

Nikkei -13 = -1

ASX200 Futures -2 = -2

Market Sentiment = 0

Friday, January 17, 2014

Market Sentiment

Dow -65 = -4

Nasdaq 4 = 1

S and P 500 -2 = -1

Ftse -4 = -1

Nikkei -62 = -1

ASX200 Futures -3 = -2

Market Sentiment = -8

Local Market Expected To Open Flat

Ahead of the local open, SPI futures were 3 points lower at 5,268.

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