Stocks Booked Their Largest Weekly Loss with Higher Volatility. The Sentiment is in Mixed Mode.

The Global stocks booked their largest weekly loss since the past three months. Although fourth-quarter earnings results continued to improve in the latest week, The U.S benchmark Indexes closed with a red mark about -4 % on raising concerns about speculative excesses. The CBOE Volatility Index surged more than 50% for the week. The government’s initial GDP estimate showed that the U.S. economy shrank into 3.5% in 2020. However, last-quarter GDP grew at an annual rate of 4.0 %.

The European benchmark Indexes fell about -4.3 % on concerns that the economy could slow due to the raging coronavirus pandemic and delays in distributing Covid-19 vaccines. Many European countries extended their tightening restrictions to curb the spread of new coronavirus variants. However, Countries like Germany, France, and Spain reported relatively resilient GDP numbers for the fourth quarter, spurring hopes that the eurozone might avoid a deeper recession.

The most APAC benchmark Indexes closed lower for the week, about -5.24%. The Indian markets may continue to remain highly volatile amidst the ongoing earnings season and the Union Budget 2021. Korean’ Kospi-100 Index is leading losses among the region’s major markets. Stocks across China dropped after the central bank tightened financial conditions and an official raised concerns that loose liquidity could inflate an asset bubble.

Weekly market movement

Underlying_2021-02-01- Stocks Booked Their Largest Weekly Loss

Gold closed lower modestly for the week. The Sentiment for the gold remains bullish for this week.

The Brent Crude Oil Closed higher about 0.85 % as a weekly gain.  Bitcoin Falls Back to $32K as Elon Musk’s Bio Change Fades Into Memory.

Sentiment Analysis

The below figures illustrates the news and social media sentiment trend for the week. The Sentiment is Mixed among regions. The U.S Index S&P-500 is showing the downtrend in Sentiment for the week. However, The rest of the significant U.S Indexes in Neutral mode. The U.S market expected to be highly volatile this week.

The French Index CAC-40 and Londons’s FTSE-100 turns in to the strong bearish view in sentiment direction. Dax-30 and FTSE-MIB remain neutral for the week.

There is a mixed sentiment direction among the major APAC benchmark Indexes. Australian Index ASX-200, Japan’s Nikkei-225 and Chinas SSE-50 Indexes turn into bullish views for the week. India’s Nifty-50 Index remain Negative in sentiment trend.

Sentiment Trend Chart

Sentiment Chart_2021-02-01- Stocks Booked Their Largest Weekly Loss

The following critical economic data refer to  includes Construction spending on Monday, ADP National Employment Report on Wednesday, Weekly unemployment claims and Factory orders on Thursday, Jobs and unemployment and  Consumer credit on Friday.

Sentiment Values

Sentiment Table_2021-02-01- Stocks Booked Their Largest Weekly Loss

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_2021-02-01- Stocks Booked Their Largest Weekly Loss

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
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