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.


Wednesday, April 30, 2014

Market Sentiment


Dow                                             87 = 4

Nasdaq                                        29 = 1

S and P 500                                  9 = 1

Ftse                                            70 = 1       

Nikkei                                     holiday   

ASX200 Futures                        6  = 2

                                                                           

Market Sentiment  = 9
 

US stocks close higher ahead of two-day Federal Reserve policy meeting.
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Tuesday, April 29, 2014

Market Sentiment


Dow                                             87 = 4

Nasdaq                                         -1= -1

S and P 500                                  6 = 1

Ftse                                            14 = 1       

Nikkei                                     -141= -1 

ASX200 Futures                       39  = 2

                                                                           

Market Sentiment  = 6
 

US stocks rise at close with surging M&A activity firmly in the spotlight.
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Monday, April 28, 2014

Market Sentiment


Dow                                             -140 = -4

Nasdaq                                          -73 = -2

S and P 500                                  -15 = -2

Ftse                                              -17  = -1  

Nikkei                                           24  =  1          

ASX200 Futures                        -23  = -2

                                                                           

Market Sentiment  = -10
 
The Australian sharemarket is expected to fall when trading resumes on Monday with investors betting that the US Federal Reserve will cut its bond-buying activity for the fourth month in a row.
 
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Thursday, April 24, 2014

Market Sentiment


Dow                                             -13 = -2

Nasdaq                                        -34 = -2

S and P 500                                  -4 = -1

Ftse                                              -7  = -1   

Nikkei                                        158  = 1   

ASX200 Futures                        41  = 2

                                                                           

Market Sentiment  = -3

Strong earnings releases fail to drive US stocks higher for seventh day.
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Wednesday, April 23, 2014

Market Sentiment


Dow                                             65 = 4

Nasdaq                                        40  = 2

S and P 500                                  8  = 1

Ftse                                             57  = 1     

Nikkei                                      -123 = -1   

ASX200 Futures                        29  = 2

                                                                           

Market Sentiment  = 9
 
US MARKETS ROSE AGAIN OVERNIGHT TO POST THEIR 6TH  CONSECUTIVE DAILY RISE

 
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Tuesday, April 22, 2014

Market Sentiment


Dow                                             41 = 2

Nasdaq                                        26  = 1

S and P 500                                  7  = 1

Ftse                                             41  = 1     

Nikkei                                          -4 = -1   

ASX200 Futures                        35  = 2

                                                                           

Market Sentiment  = 6
 
Earnings results bolster sentiment as US markets close higher on low volumes
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Thursday, April 17, 2014

Market Sentiment


Dow                                             162 = 4

Nasdaq                                         52  = 2

S and P 500                                 19  = 2

Ftse                                             43  = 1     

Nikkei                                        421 = 1    

ASX200 Futures                        33  = 2

                                                                           

Market Sentiment  = 12

Wall St rallied on dovish comments from fed chair Janet Yellen and strong industrial production and housing starts data
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