Stocks Closed Higher Despite Negative Tech Shares
Most stocks end higher for the week. However, the tech shares are finished negatively due to the profit-taking from the recent gains. The U.S. Economic data showing the hope on both surprising upsides of U.S. Retail sales jumped 7.5% in June and Industrial production increased than expected would move the market in a positive direction. Russel 2000 Index outperformed with U.S. Region.
The Major European Indexes climbed between 2% to3.5%. FTSE MIB Index outperformed. Continued progress in vaccine development and French President Emmanuel Macron announced another EUR 100 Billion would inject for the economic recovery will boost the market in uptrend mode.
The major Indexes from APAC regions ended mixed in direction. Despite the positive GDP in the second quarter, China lost 70% of its previous week gains due to the new US-Trade tension. Japanese shares are ended higher on the Bank of Japan decided to keep the short term and long-term interest rated are unchanged. However, the report from the Tokyo Research firm said the Japanese bankruptcies surge in the first half of 2020 is the biggest worry for the Japanese banking stocks.
Oil demand continued to recover on economic reopen and OPEC decided to reduce supply cuts by 2 Million BPD from August. The uncertainty in the Equity market keeps the Gold remain neutral.
The below charts show the mixed news sentiment trends for the significant Indexes globally. The US indexes are showing a continuous uptrend in sentiment. However, the Dow -30 Index represents a sideways in news sentiment trend.
The Index FTSE-MIB shows a strong uptrend, but the Dax-30 Index is in negative sentiment trend. Nikkie-225 Index from the APAC region shows a strong downturn in sentiment due to the recent bankruptcies report.
The Australian Index ASX-200 also represent a minor-down trend in sentiment on increasing official unemployment rates reached 7.4 % for the month of June, and the recent announcement of new restrictions could enact on main cities in Australia due to the latest new surges in Covid-19 cases.
The upcoming earnings reports from the companies and the critical economic data being releases ,including home sales on Wednesday, financial index on Thursday and Purchasing manager’s index on Friday would be the deciding factors for the coming week. https://tradingeconomics.com/calendar
Note: The sentiment indicator can use 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.
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