Zigzag and Record High Market with the Dominated Neutral Sentiment

Many of the liquid Indexes performed zigzag movement in direction for the past week globally. However, U.S S&P 500 closed higher about 0.72% and set a new record high. The Nasdaq Index outperformed and ended with the weekly gain of about 2.65% with a sharp increase in technology stocks. In contrast, The Russel 2000 Index booked a weekly loss of about -1.77%. No weekly changes in the Dow index movement.

The European shares booked a significant loss for the week about -0.9 to -1.66%, followed by a most considerable gain past week. The recent surge in the new coronavirus cases is the primary concern for the European market. However, During the week, the Euro reached its highest value relative to the dollar since May 2018. Partly on the view that the Eurozone economy would recover faster from coronavirus lockdowns than the U.S.

The Indexes from the APAC region were mixed in trend. ASX 200 and Hang Seng Indexes closed with a modest loss of about -0.25%. New Vaccine development and supporting policies has made Nifty India outperformed within the APAC region. Nifty marked as a  weekly gain of about 1.73 %. On the hand, Kospi-100 booked a significant loss of about -4.27% for the week.

Weekly market movement

Gold remained in the sideways movement and booked a marginal weekly loss of around -0.31% and a ninth row of weekly gain. Oil closed lower about -1% for the week.

Sentiment Analysis

The below charts show the trend in news sentiment for the week. The news sentiment is dominated by a neutral mode, despite the better than expected corporates earnings and increasing in July home sales last Friday’s data

However, the Russel 2000 Index shows a strong positive sentiment trend for the week. Despite the economic recovery, The Dax and FTSE 100 Indexes from Europen zone, proving the negative in sentiment direction. The rest of the significant liquid global Indexes are in the neutral mode for the week.

The critical events for the past week include better corporate earnings and home sales increased on last Friday data. These are the positive sign for the market. On the other side, European countries (Italy, Spain) tighten restriction as coronavirus cases climb and US-China tensions are devastating news for the week. This mixed contents may halt the market from a rally or reverse the market to the downward direction

Sentiment Trend Chart

Sentiment Trend

The following critical economic indicator and earnings reports will be the deciding factors for the future market direction for the week. The factors include consumer confidence on Tuesday, durable goods on Wednesday, and personal income and spending on Friday (https://www.investing.com/earnings-calendar/).

Sentiment Trend

Sentiment Values

Note: The sentiment score applicable as an additional overlay for your existing models to improve the performance further.

Buy & Sell Signals

The below table is showing the buy/sell signals generated based on InfoTrie’s proprietary Investment/ Trading models. These models are developed with the combination of technical, fundamental, quantitative techniques and primarily the news-based sentiment score as an additional overlay.

I have tabulated the random signals from several InfoTrie’s Trading/Investment models.

Trading Signals

The news sentiment score provides a significant improvement, significant “Alpha” compared to the traditional investment/trading models.

For more details on the analysis, accessing complete tear sheets or white paper for the models, subscription details for News Sentiment data and other consulting works, please contact us with the information provided below.

contact@infotrie.com

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InfoTrie Financial Solutions Pte Ltd, Singapore

Sureshkumar Ramani +65 93376035

Frederic GEORJON +33 (0)6 1304 0600


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