U.S Stocks closed lower. News Sentiment Turns Neutral.

U.S Stocks closed modestly for the week on un ending negotiations for the next stimulus package before the election. The major liquid Indexes from U.S region declined with in a range of -0.53% to -1.06% as a weekly loss. The technology sector also performed worst within the S&P 500 Index. However, the small  cap Index Russel-2000 ended with the positive mark. 

The weekly economic data for the long term is encouraging but for the short term is a grim. The news sentiment turns neutral for the week.

The key Indexes from European region declined about -0.5% to -2.0% for the week followed by the U.S market. Germany’s Dax-30 Index  performed worst within the European region. The economic recovery was stalling amid tighter restrictions to control the surging coronavirus infections.

The major benchmarks for the APAC region ended mixed for the week. China’s composite index performed worst in the region booked -2.0% for as weekly loss. ASX 200 Index closed modestly lower. On the other hand, Nifty 50, KOSPI-100, Hang Seng-50 and Nikkei-225 Indexes were closed higher for the week. Hong Kong Index outperformed. 

Weekly market movement

Underlying_Oct-26-2020

Oil closed lower about -2.52% for the week and expected to be lower on tighter mobility restrictions in European region. Gold is range bounded and ended flat for the week.

Sentiment Analysis

The below chart illustrates the news sentiment trend for the week. The U.S market sentiment turns neutral from its previous negative state on stimulus negotiations. The U.S Industrial index Dow-30  shows modestly negative trend for the week. 

All the major European Indexes turns neutral for the week. However, Italy’s FTSE MIB index showing positive in sentiment direction. 

The major Indexes from APAC region turns neutral followed by the global events. Nifty 50 turns modestly positive from the its previous neutral in sentiment direction. The news announcement related to the new stimulus package in coming days may alter the current sentiment.

Also, The third-quarter earnings season is  the main focus for this week. More than 40% of the S&P 500 companies reporting earnings throughout the week (https://finance.yahoo.com/calendar/earnings). This may change the sentiments dramatically. 

Sentiment Trend Chart

Sentiment_Trend_Oct-26-2020

The following critical economic data refer to https://www.fxstreet.com/economic-calendar released includes consumer confidence on Tuesday, third-quarter GDP growth on Wednesday, and personal income and spending on Friday.

Sentiment Trend

Sentiment_Value_Oct-26-2020

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.

BuySell-Oct-26-2020

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

InfoTrie Financial Solutions Pte Ltd, Singapore

Sureshkumar Ramani +65 93376035

Frederic GEORJON +33 (0)6 1304 0600


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