BULL MARCH AHEAD WITH THE MIXED SENTIMENT

Although one of the awful weeks in the U.S nation’s political history and increased daily Covid deaths number, Bulls rallied the global market on the expectations of further U.S. government stimulus following Senate runoff elections in Georgia. The major Indexes showed the momentum of about 1.6 % to 5.75% and hit the record highs with the mixed Sentiment. Small-cap stocks outperformed the large caps.

The significant European benchmark Indexes surges into the new high followed by the    U. S market on optimism on post vaccines economy recovery and more stimulus bags, despite the imposition of stricter lockdown. The Indexes rallied about 2.5% to 6%. FTSE-100 Index outperformed led by banking and energy stocks.

The most APAC benchmark Indexes setting up a record high last week and attain a weekly gain of about 2.5%. The Korean Index KOSPI-100 outperformed and surged around 9.7%. This momentum was the largest weekly gain for the past several. China’s Shanghai Index showed a bullish move, although the Sentiment has shaken after the NYSE announcement delisting three Chinese telecommunications companies.

Weekly market movement

Underlying_2021-01-11-BULL MARCH AHEAD WITH THE MIXED SENTIMENT

Gold dropped about -2.7 % as a weekly loss. The Sentiment for the gold remains bearish for the week. WTI oil prices rose above $50. The level was last seen in February, as Saudi Arabia announced an unexpected production cut.

Bitcoin extended its recent surge into $40,000. JPMorgan says bitcoin could rally as high as $100,000 – but warns that such a wave would be unsustainable.

Sentiment Analysis

The below figures illustrates the news and social media sentiment trend for the week. The overall Global Indexes ended with the mixed Sentiment.  The most U.S benchmark Indexes showing the uptrend in sentiment trend for the week. S&P 500 Index turned in to a neutral mode.

The German Key Index DAX-30 is showing a modest downtrend in sentiment direction. On the other hand, Itali’s FTSE MIB remains strong bullish Sentiment for the week. CAC-40 AND FTSE-100 remain neutral mode for the week.

Except for Nifty-50 showing the strong downtrend in Sentiment, the other major benchmark Indexes from APAC region showing the uptrend in Sentiment direction. Hongkong’s HIS-50 and China’s SSE-50 Indexes remain neutral for the week.

Trump administration was considering adding Chinese internet leaders Alibaba and Tencent to a U.S. investment blacklist. Several unusual events from Trump’s administration, increased Covid cases, leading to new restrictions on the week’s bad news. Simultaneously, the post-vaccine developments, optimism on economic recovery and way to more stimulus packages are the positive contents for the week.

Sentiment Trend Chart

Sentiment Chart_2021-01-11-BULL MARCH AHEAD WITH THE MIXED SENTIMENT

The following critical economic data refer to https://www.fxstreet.com/economic-calendar  includes inflation, retail sales and industrial production. Also, several national and regional banks reporting quarterly earnings.

Sentiment Values

Sentiment Table_2021-01-11-BULL MARCH AHEAD WITH THE MIXED SENTIMENT

Note: The sentiment scores applied as an additional overlay to your existing models to further improve performance.

Buy & Sell Signals

The below table shows the buy/sell signals generated based on InfoTrie’s proprietary Investment/ Trading models. These models developed using technical, fundamental, quantitative techniques and the news-based sentiment score as an additional overlay.

I have tabulated the random signals from several InfoTrie’s Trading/Investment models.

Buy_Sell_2021-01-11-BULL MARCH AHEAD WITH THE MIXED SENTIMENT

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 below.

InfoTrie Financial Solutions Pte. Ltd.
Alternative Data, Sentiment Analysis, Financial I.T. and A.I. Consulting

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

contact@infotrie.com
Suresh Kumar Ramani +65 9337 6035
Frederic GEORJON +33 (0)6 1304 0600


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