Think Financial Markets - Excellence In Trading Financial Markets

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.


Saturday, March 29, 2014

Market Sentiment


Dow                                             59 = 4

Nasdaq                                         5  = 1

S and P 500                                 9  = 1

Ftse                                            27 = 1       

Nikkei                                        73 = 1 

ASX200 Futures                       15= 2

                                                                           

Market Sentiment  = 10
Local stocks are expected to open higher on Monday

Friday, March 28, 2014

Market Sentiment


Dow                                             -5 = - 2

Nasdaq                                      -22  = -1

S and P 500                                 -4 = -1

Ftse                                            -17 = -1    

Nikkei                                          0   = 0   

ASX200 Futures                       -7   = -2

                                                                           

Market Sentiment  = -7
 

Global stocks hardly budged amid continuing nerves over Ukraine, while the Australian dollar pushed higher overnight.


Thursday, March 27, 2014

Market Sentiment


Dow                                             -99 = - 4

Nasdaq                                        -61  = -2

S and P 500                                 -13 = -1

Ftse                                                1  =  1   

Nikkei                                         54   =  1 

ASX200 Futures                       -35  =- 2

                                                                           

Market Sentiment  = -7



Wall Street slumped as the US president’s grandstanding on Russia spooked investors.

 



                                                              

Wednesday, March 26, 2014

Market Sentiment


Dow                                              91 =  4

Nasdaq                                          8  =  1

S and P 500                                   8  = 1

Ftse                                              85 =  1    

Nikkei                                         -52 =- 1 

ASX200 Futures                         23  = 2

                                                                           

Market Sentiment  = 8
 

Solid data out of Europe and the US saw equities rally on both sides of the pond despite the escalating situation in Crimea.



 

Tuesday, March 25, 2014

Market Sentiment


Dow                                              -26 =  -2

-9  = -1

Ftse                                              -37  = -1  

 
 
 
Dow                                              -26 =  -2
Nasdaq                                          -50 = -2
S and P 500                                   -9  = -1
Ftse                                              -37  = -1  
Nikkei                                         251  =  1          
ASX200 Futures                            8  = 2
                                                                           
Market Sentiment  = -3 
Soft Chinese, EU data and tech heavyweights drag US markets lower
 
 
 
 

 

Monday, March 24, 2014

Market Sentiment


Dow                                              -28 =  -2

Nasdaq                                          -42 = -2

S and P 500                                   -5  = -1

Ftse                                              15   =  1  

Nikkei                                        holiday    

ASX200 Futures                        -24  = -2

                                                                           

Market Sentiment  = -6
Local market looks to open slightly lower as overseas markets were volatile on Friday night.

Friday, March 21, 2014

Market Sentiment


Dow                                              109 =  4

Nasdaq                                          12  =  1

S and P 500                                   11  = 1

Ftse                                              -31  = -1  

Nikkei                                        -238  = -1          

ASX200 Futures                         21  =  2

                                                                           

Market Sentiment  = 6

US stocks reverse weak start following stronger-than-expected manufacturing data 

Thursday, March 20, 2014

Market Sentiment


Dow                                              -114 =  -4

Nasdaq                                          -26  =  -1

S and P 500                                  - 11  =  -1

Ftse                                               -32  =   -1       

Nikkei                                            51  =    1       

ASX200 Futures                         -28  =  - 2

                                                                           

Market Sentiment  = -8
 
US stocks fall sharply as Fed delivers stimulus cut in line with expectations

 

Wednesday, March 19, 2014


Dow                                               89  =  4

Nasdaq                                          53  =  2

S and P 500                                  13  =  1

Ftse                                              37  =   1  

Nikkei                                         134  =  1          

ASX200 Futures                         24  =   2

                                                                           


Market Sentiment  = 11
Global markets took comfort overnight as the Russian president downplayed the likelihood of further encroachment on Ukraine.


 

Tuesday, March 18, 2014

Market Sentiment


Dow                                             182  =  4

Nasdaq                                          35  =  2

S and P 500                                  18  =  2

Ftse                                              40  =   1  

Nikkei                                         -50  =  -1          

ASX200 Futures                         24  =   2

                                                                           

Market Sentiment  = 10
 
 
Overnight
Restrained sanctions on Russia consoled global stocks, while US industrial production surged.