Bull Run Stopped and Sentiment Likely to be Negative

Bull run stopped. Despite the optimism in Vaccine development, past rallies in the U.S market ended and the U.S benchmark Indexes closed lower for the week on the recent spike in virus cases and hospitalizations. Also, the jobs-data release showed worse than expected initial jobless claims. S&P-500 and Dow-30 Indexes ended as weekly loss of around -0.7%. However, the Russel-2000 Index outperformed and closed above 2% for the week. The news and social media sentiment for U.S market turn neutral to negative.

The Shares in European market rose for a third consecutive week despite choppy movements in the U.S market.  However, concerns that soaring rates of infection might trigger harsher restrictions curbed gains. The top European benchmark Indices gained a range of about 0.5 to 4%. CAC-40 Index was closed above 2%, and FTSE MIB outperformed.

The APAC Indexes closed with a substantial gain of about 1% to 2.5 % for the week. The Korean Index Kospi-100 outperformed within the APAC region. Chinese stocks rose strongly after reliable economic data lifted investors’ risk appetite. China signs RCEP trade deal brings together China, Japan, and South Korea—the region’s top-three economies—under a regional trade pact for the first time and includes 10 Southeast Asian countries, Australia, and New Zealand.

Weekly market movement

Underlying_2020-11-23 - Bull Run Stopped

Gold ended flat for the week. But the market is expected to be in a positive direction. Crude oil markets have rallied again during the week.

Sentiment Analysis

The below chart shows the news and social media trend direction for the week. The U.S Indices S&P-500 and Nasdaq Indexes turn in to the modest negative in sentiment trend for the week. Dow-30 and Russel-2000 Indexes are in Neutral view.

CAC-40 and FTSE-100 Indexes are showing the negative sentiment trend. Dax-30 and FTSE-MIB remain neutral.

The sentiment trend for the benchmark Indexes from the APAC region is in mixed view. The ASX-200 is continuing to be in positive sentiment trend. Japan’s Nikkei-225 Index turns positive from its last week negative trend.  On the other hand, HIS-50, SSE-50 and Nifty-50 Indexes turns in to modest negative mode in sentiment direction for the week.

Sentiment Trend Chart

Sentiment Chart_2020-11-23 - Bull Run Stopped

The following critical economic data refer to https://www.fxstreet.com/economic-calendar released includes personal income and spending breakdowns, FOMC minutes, and building permits.

Sentiment Trend

Sentiment Table_2020-11-23 - Bull Run Stopped

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.

Buy_Sell_2020-11-23 - Bull Run Stopped,

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.

InfoTrie Alternative Data

InfoTrie Financial Solutions Pte. Ltd.
Alternative Data, Sentiment Analysis, Financial IT and AI Consulting

Read our previous blog posts. Want to access our data? Try our API or access our FinSentS platform

Suresh Kumar Ramani +65 9337 6035
Frederic GEORJON +33 (0)6 1304 0600


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