Think Financial Markets - Excellence In Trading Financial Markets: February 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, February 28, 2014

Market Sentiment

Dow 74 = 4

Nasdaq 27 = 1

S and P 500 9 = 1

Ftse 11 = 1

Nikkei -48 = -1

ASX200 Futures 10 = 2

Market Sentiment = 8

Local markets should open higher this morning as Wall Street lifted after the Fed chair hinted a pause in QE tapering was possible

Thursday, February 27, 2014

Market Sentiment

Dow 19 = 2

Nasdaq 4 = 1

S and P 500 1 = 1

Ftse -31 = -1

Nikkei -81 = -1

ASX200 Futures -16 = -2

Market Sentiment = 0

Local market expected to open flat again today as

US stocks pull back from early gain spurred by release of strong housing data.

Wednesday, February 26, 2014

Market Sentiment

Dow -27 = -2

Nasdaq -5 = -1

S and P 500 -2 = -1

Ftse -35 = -1

Nikkei 214 = 1

ASX200 Futures -2 = -2

Market Sentiment = -6

Local markets expected to open slightly down as

US investors show caution amid mixed data, earnings reports.

Tuesday, February 25, 2014

Market Sentiment

Dow 104 = 4

Nasdaq 30 = 2

S and P 500 11 = 1

Ftse 28 = 1

Nikkei -28 = -1

ASX200 Futures 25 = 2

Market Sentiment = 9

The local market is expected to open up as Wall Street hit a fresh record as investors shrugged off recent weather-distorted data and M&A optimism grew.

Monday, February 24, 2014

Market Sentiment

Dow -30 =-2

Nasdaq -4 = -1

S and P 500 -4 = -1

Ftse 25 = 1

Nikkei 416 = 1

ASX200 Futures -2 = -2

Market Sentiment = -4

Local market to open flat

U.S stocks slipped Friday as investors analyzed mixed signals about the health of the economy and corporate earnings.

Friday, February 21, 2014

Market Sentiment

Dow 93 = 4

Nasdaq 30 = 2

S and P 500 11 = 1

Ftse 16 = 1

Nikkei -317 = -1

ASX200 Futures 43 = 2

Market Sentiment = 9

Local markets are looking to rise on open after overseas bourses improved overnight

Thursday, February 20, 2014

Market Sentiment

Dow -90 = -4

Nasdaq -35 = -1

S and P 500 -12 = -1

Ftse 1 = 1

Nikkei -77 = -1

ASX200 Futures -15 = -2

Market Sentiment = -8

Local markets expected to open lower as U.S.Stocks ended down on Wednesday, as investors digested minutes from the Federal Reserve's last meeting and grappled with disappointing economic data.

Wednesday, February 19, 2014

Market Sentiment

Dow -24 = -2

Nasdaq 29 = 1

S and P 500 2 = 1

Ftse 60 = 1

Nikkei 450 = 1

ASX200 Futures 6 = 2

Market Sentiment = 4

Local Markets can expect a sluggish start after overseas markets were subdued after the President’s Day holiday and mixed data from Germany and the US.

Tuesday, February 18, 2014

Market Sentiment

Dow 0

Nasdaq 0

S and P 500 0

Ftse 72 = 1

Nikkei 80 = 1

ASX200 Futures 28 = 2

Market Sentiment = 4

Local Markets Are Expected To Open Higher

Ahead of the local open SPI futures were 28 points higher at 5,373.

Monday, February 17, 2014

Market Sentiment

Dow 127 = 4

Nasdaq 3 = 1

S and P 500 9 = 1

Ftse 4 = 1

Nikkei -222 = -1

ASX200 Futures 38 = 2

Market Sentiment = 8

Local market looks to open higher as US investors showed their affection for stocks on Valentine's Day by sending the Dow up more than 100 points and pushing gold prices to new highs for the year.

Friday, February 14, 2014

Market Sentiment

Dow 64 = 2

Nasdaq 39 = 1

S and P 500 11 = 1

Ftse -16 = -1

Nikkei -265 = -1

ASX200 Futures 35 = 2

Market Sentiment = 4

Local Market Set To Open Higher

Ahead of the local open, SPI futures were 35 points higher at 5,298.

Thursday, February 13, 2014

Market Sentiment

Dow -31 = -2

Nasdaq 10 = 1

S and P 500 0 = 0

Ftse 2 = 1

Nikkei 82 = 1

ASX200 Futures 8 = 2

Market Sentiment = 3

Local Market Expected To Open Flat

US stocks shake off strong Chinese trade data to largely trade flat.

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