U.S Stocks Back on Track. The Sentiment Turns into Neutral Mode.

The U.S stocks back and track after a loss of the previous week. The primary benchmark Indexes are closed higher, about 0.59% to 4.19%. The Tech Index, Nasdaq-100 outperformed. Communication services shares led the gains in the S&P 500 Index, boosted by sharp growth in Netflix shares following its report of surprisingly large subscriber gains in the fourth quarter.

Daily deaths from the virus in the U.S. hit the second-highest level on record on Wednesday, but daily cases and hospitalizations showed signs of moderating. The pace of vaccinations and the size of additional fiscal stimulus are the key-driven forces for the market.

Despite the strong up momentum in the U.S market, the critical European benchmark Indexes slipped and booked a weekly loss of about -0.6% to -1.31% on U.S. economic stimulus doubts and renewed coronavirus concerns held back gains. However, German Index Dax-30 marked a marginal weekly increase of about 0.63%.  The most Europen countries extended their strict lockdown restrictions for the next few weeks.

The most APAC benchmark Indexes moved higher for the week. Hongkong’s HSI-50 Index outperformed and closed with the sharp weekly gain of about 3.06%.  However, India’s Nifty-50 Index closed lower modestly.

Weekly market movement

Underlying_2021-01-25-U.S Stocks Back on Track.

Gold closed higher about 1.44% as ac weekly gain. The Sentiment for the gold turns into the positive.

The Brent Crude Oil ended as a flat week. The Sentiment remains bearish due to the extended lockdowns.  The Volatility of Bitcoin increased sharply, and the market is range bounded within the field of 38k to 29k USD.

Sentiment Analysis

The below figures illustrates the news and social media sentiment trend for the week. Despite the hopes on more stimulus packages and Vaccination, the overall global market sentiment trend turns into the neutral-Negative mode. The U.S tocks back on track; however, the Sentiment trend for the U.S market dominated by the neutral direction.

The Sentiment trend for the European Indexes turns in to the neutral mode. However, London’s FTSE-100 Index showing the strong uptrend as a weekly sentiment trend.

The top benchmark Index from the APAC region turns in to the negative sentiment direction for the week.  Nifty-50, Kospi-100 and China’s SSE-50 Indexes showed the vital sign of bearish mode for the week.

Sentiment Trend Chart

Sentiment Chart_2021-01-25-U.S Stocks Back on Track.

The following critical economic data refer to https://www.fxstreet.com/economic-calendar  includes personal income and consumption growth and inflation breakdowns.

Sentiment Values

Sentiment Table_2021-01-25-U.S Stocks Back on Track.

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_2021-01-25-U.S Stocks Back on Track.

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

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


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