U.S Stocks Hitting New Highs
On Stimulus Hopes!

Despite the mixed economic data, the U.S Stocks Hitting New Highs.The U.S major Indexes hitting an all-time high on the positive signs of another relief package. The small-cap stocks outperformed the large-cap stocks for the sixth consecutive week with the wide margin. The U.S Russel-2000 and Nasdaq-100 Indexes climbed over 3% as a weekly gain. Tesla, Nio A ADR, Netflix, AMD and Apple shares were the top five weekly trending stocks in the U.S market.

The major European benchmark Indexes rose on coronavirus vaccinations optimism, better than expected result on vital economic data’s on Eurozone and the positive sign of next round of fiscal stimulus package.  Germany’s Dax-30 Index outperformed and rallied about 3.94% as a substantial weekly gain. However,  London’s FTSE 100 ended with a negative mark of about -0.27% for the week as Brexit trade deal hopes trigger sterling rise.

The most Indexes from APAC region edged higher for the week. India’s Nifty-50 Index outperformed and ends at record closing for 6th straight day. China’s Shanghai Composite Index closed higher, about 1.43% as a weekly gain despite the announcement from the U.S that it was blacklisting China’s top chipmaker and more than 60 other companies for national security reasons.

Weekly market movement

Underlying_2020-12-21-U.S Stocks Hitting New Highs on Stimulus Hopes!

Gold closed higher about 2.46% as a weekly gain. We expect there won’t be much upside in the current Gold movement considering a positive sign on economic recovery. Oil closed higher for the seventh consecutive week and rallied about 4.58% as a weekly gain due to the high demands from India and China.

Bitcoin rocket speeds its recent rally as the price of the cryptocurrency climbed more than 25% and soared $23,000 on Thursday for the first time. It was the biggest weekly gain for bitcoin since May 2019, and it lifted year-to-date gains above 200%.

Sentiment Analysis

The below figure shows the news and social media sentiment trend direction for the week. U.S Stocks Hitting New Highs On Stimulus Hopes!.This week the overall sentiment remains mixed. The U.S benchmark Indexes, S&P-500 and Russel-2000 are showing the strong bullish sentiment trend for the week. On the other hand, the Dow-30 Index shows a modest downtrend. Nasdaq-100 remains neutral.  Increased daily Covid-19 cases, new relief package, rose in the unemployment rate are the critical topics for the week.

Despite the outperformance in the underlying market, Germany’s Dax-30 Index showing the downtrend in sentiment direction. The French Index CAC-40 viewed as a positive trend in sentiment direction. FTSE-MIB remains neutral for the week. However, the readings from purchasing managers’ indexes in essential eurozone economy are better than expected.

The Nikkei-225 Index from the APAC region showing the strong negative view in sentiment direction. The rest of the significant benchmark Indexes from APAC region remains neutral for the week.

Sentiment Trend Chart

Sentiment Chart_2020-12-21-U.S Stocks Hitting New Highs On Stimulus Hopes!

The following critical economic data refer to https://www.fxstreet.com/economic-calendar  released includes personal income and consumption, consumer sentiment, and new home sales.

Sentiment Values

Sentiment Table_2020-12-21-U.S Stocks Hitting New Highs On Stimulus Hopes!

Note: The sentiment scores applied as an additional overlay to 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_2020-12-21-U.S Stocks Hitting New Highs On Stimulus Hopes!

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 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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