Think Financial Markets - Excellence In Trading Financial Markets: May 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, May 30, 2014

Market Sentiment

Dow 66 = 4

Nasdaq 23 = 1

S and P 500 10 = 1

Ftse 20 = 1

Nikkei 11 = 1

ASX200 Futures 19 = 2

Market Sentiment = 10

Local stocks look to open higher as overseas markets improved over night.

Thursday, May 29, 2014

Market Sentiment

Dow -42 =-2

Nasdaq -12 = -1

S and P 500 -2 = -1

Ftse 6 = 1

Nikkei 34 = 1

ASX200 Futures -16 = -2

Market Sentiment = -4

US stocks weaken on fresh batch of mixed retail earnings,

Wednesday, May 28, 2014

Market Sentiment

Dow 69 = 4

Nasdaq 51 = 2

S and P 500 11 = 1

Ftse 29 = 1

Nikkei 34 = 1

ASX200 Futures 7 = 2

Market Sentiment = 11

Local Markets expected to open higher as US stocks return from holiday in strong fashion, lift on news of improving data

Tuesday, May 27, 2014

Market Sentiment

Dow Holiday

Nasdaq Holiday

S and P 500 Holiday

Ftse -5= -1

Nikkei 140 = 1

ASX200 Futures 7 = 2

Market Sentiment = 2

Local markets are expected to open flat as U.S Markets were closed for Memorial Day holiday

Monday, May 26, 2014

Market Sentiment

Dow 63 = 4

Nasdaq 31 = 2

S and P 500 8 = 1

Ftse -5= -1

Nikkei 296 = 1

ASX200 Futures 10 = 2

Market Sentiment = 9

The local market looks set to open slightly higher following the S&P 500’s record close on Friday and after a weekend of elections in Europe.

Friday, May 23, 2014

Market Sentiment

Dow 10 = 2

Nasdaq 23 = 1

S and P 500 4 = 1

Ftse -1= -1

Nikkei 296 = 1

ASX200 Futures 7 = 2

Market Sentiment = 6

A rise in US home sales helped give Wall Street a modest push, while positive Chinese manufacturing figures also boosted market sentiment.

Thursday, May 22, 2014

Market Sentiment

Dow 159 = 4

Nasdaq 35 = 2

S and P 500 15 = 2

Ftse 19 = 1

Nikkei -33 = -1

ASX200 Futures 26 = 2

Market Sentiment = 10

US stocks recover yesterday's losses by close despite rates talk from Fed.

Wednesday, May 21, 2014

Market Sentiment

Dow -138 = -4

Nasdaq -29 = -1

S and P 500 -12 = -1

Ftse -43 = -1

Nikkei 69 = 1

ASX200 Futures -23 = -2

Market Sentiment = -8

US stocks move sharply lower as retail earnings paint mixed picture of US economy.

Tuesday, May 20, 2014

Market Sentiment

Dow 21 = 2

Nasdaq 35 = 2

S and P 500 7 = 1

Ftse -11 = -1

Nikkei -90 = -1

ASX200 Futures 11 = 2

Market Sentiment = 5

US stocks close higher on M&A moves, bargain hunting among tech stocks

Monday, May 19, 2014

Market Sentiment

Dow 45 = 2

Nasdaq 21 = 1

S and P 500 7 = 1

Ftse 15 = 1

Nikkei -202 = -1

ASX200 Futures 8 = 2

Market Sentiment = 6

The Australian sharemarket is expected to open a touch higher on the back of mixed base metals prices and gains on Wall Street on Friday night.

Friday, May 16, 2014

Market Sentiment

Dow -167 = -4

Nasdaq -31 = -2

S and P 500 -18 = -1

Ftse -38 = -1

Nikkei -107 = -1

ASX200 Futures -27 = -2

Market Sentiment = -11

Local markets expected to open lower

as Wall Street followed European markets lower despite positive data, while US Treasuries rallied.

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