U.S Stocks Rallied. But Sentiment Turns Neutral to Negative!

Most of the U.S Stocks ended positively for the week. The S&P 500 is up more than 50 % from its recent bottom. The U.S stocks primary Indices climber about 3%. The Nasdaq 100 Indices is continuing to outperform. Despite the coronavirus pandemic, this Unbelievable rally markets make social media sentiments turn Neutral-Negative trend for the U.S market.

The European stock indices closed higher within the range of 0.74% to 2.18%. CAC-40 (France) Index outperformed within the European region.  Despite the recent surges in Covid-19 new cases, The European countries rejected the nationwide lockdowns could keep the economy better than expected.

The Indexes from the APAC region were continuing to mix in trend. The primary Indexes ended within a range of about -0.61 % to 2.43 %. Nifty-50 India outperformed within the APAC region and closed above 2%. Japanese stocks were mostly flat for the week as news of Prime Minister Shinzo Abe’s resignation on Friday helped offset earlier gains.

Weekly market movement

Gold continuing in the zigzag movement and ended flat with the marginal up about 0.19% for the week. Oil ended higher about 1.58% as a weekly gain.

Sentiment Analysis

The below charts illustrate the trend in the news and social media sentiment for the week. The U.S market sentiment turns towards neutral to negative in sentiment direction for the week. The Nasdaq remains uninterested in view.

However, The European Index sentiments neutral to positive in opinion compare to its previous week. FTSE-100 and FTSE-MIB show the strong uptrend in sentiment trend. Dax 30 and CAC-40 remains neutral.

The sentiment for the APAC region continues to mix in trend. Industrial profits in July surged 19.6% over a year earlier in their fastest year-over-year growth since June 2018. However, cumulative earnings for the year to date remain in negative territory. The Japan Prime minister Abe’s resignation unlikely to result in a change in policies.

Sentiment Trend Chart

The following critical economic indicator (https://www.fxstreet.com/economic-calendar) Important economic data being released this week include Construction Spending.

Sentiment Trend

Note: The sentiment scores 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.

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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