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

Thursday, June 26, 2014

Market Sentiment

Dow 49 = 2

Nasdaq 29 = 1

S and P 500 10 = 1

Ftse -53 = -1

Nikkei -110 = -1

ASX200 Futures 7 = 2

Market Sentiment = 4

Wall Street closed higher despite GDP for the March quarter coming in much worse than expected,

Wednesday, June 25, 2014

Market Sentiment

Dow -119 = -4

Nasdaq -18 = -1

S and P 500 -13 = -1

Ftse -13 = -1

Nikkei 7 = 1

ASX200 Futures -27 = -2

Market Sentiment = -8

US shares sink more than 0.5% on profit-taking push from investors.

Tuesday, June 24, 2014

Market Sentiment

Dow -10 = -2

Nasdaq 1 = 1

S and P 500 -1 = -1

Ftse -25 = -1

Nikkei 20 = 1

ASX200 Futures 6 = 2

Market Sentiment = 0

Weak European PMI figures clouded positive US data and weighed on markets,

Monday, June 23, 2014

Market Sentiment

Dow 26 = 2

Nasdaq 9 = 1

S and P 500 3 = 1

Ftse 17 = 1

Nikkei -12 = -1

ASX200 Futures 15 = 2

Market Sentiment = 6

Australian shares are expected to start the week in a firmer position as strong commodity prices boost key resource stocks.

Friday, June 20, 2014

Market Sentiment

Dow 15 = 2

Nasdaq -4 = -1

S and P 500 3 = 1

Ftse 30 = 1

Nikkei 245 = 1

ASX200 Futures 1 = 2

Market Sentiment = 6

S&P 500 again moves to new heights as Dow falls just shy of record.

Thursday, June 19, 2014

Market Sentiment

Dow 98 = 4

Nasdaq 26 = 1

S and P 500 15 = 2

Ftse 12 = 1

Nikkei 140 = 1

ASX200 Futures 23 = 2

Market Sentiment = 11

US Investors welcome outcomes of latest Fed policy meeting, push stocks sharply higher at close.

Wednesday, June 18, 2014

Market Sentiment

Dow 27 = 2

Nasdaq 16 = 1

S and P 500 4 = 1

Ftse 12 = 1

Nikkei 0 = 0

ASX200 Futures -4 = -2

Market Sentiment = 3

Wall Street rose on strong inflation data and as investors await the outcome of the Fed's monetary policy meeting.

Tuesday, June 17, 2014

Market Sentiment

Dow 5 = 2

Nasdaq 10 = 1

S and P 500 2 = 1

Ftse -23 = -1

Nikkei -165 = -1

ASX200 Futures -7 = -2

Market Sentiment = 0

Wall Street managed to eke out minor gains as tensions in Iraq offset positive data, while European markets closed lower.

Monday, June 16, 2014

Market Sentiment

Dow 42 = 2

Nasdaq 13 = 1

S and P 500 6 = 1

Ftse -65 = -1

Nikkei 124 = 1

ASX200 Futures 3 = 2

Market Sentiment = 6

All eyes will be on the US Federal Reserve this week as investors look for any sign of an imminent rate rise, while tensions in Iraq push the oil price higher.

Friday, June 13, 2014

Market Sentiment

Dow -110 =-4

Nasdaq -34 = -2

S and P 500 -14 = -1

Ftse 4 = 1

Nikkei -96 = -1

ASX200 Futures -25 = -2

Market Sentiment = -9

Wall Street slipped as retail and jobs data failed to inspire, while intensifying violence in Iraq saw the price of crude jump

Thursday, June 12, 2014

Market Sentiment

Dow -102 =-4

Nasdaq -6 = -1

S and P 500 -7 = -1

Ftse -35 = -1

Nikkei 75 = 1

ASX200 Futures -9 = -2

Market Sentiment = -8

Cut to world growth forecast sees US stocks retreat from recent rally.

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