Stocks Rally to Continue. Sentiment Turns Modest Bullish.
Global stocks rally to continue by the strong earnings growth and the development in vaccination distribution. In the U.S, the COVID-19 infections continued to trend down this week. The first half week of the market paused at the peak, and later part the major U.S. stock indexes all posted gains of more than 1% and set new record highs. Midcap stocks continuing to outperform the large-caps. For Q4 2020, 80% of S&P 500 companies have reported a positive EPS surprise.
The shares in the European market rose modestly with the volatile movement. However, The DAX-30 Index closed with the red mark for the week. London’s FTSE-100 index outperformed and closed above 1%. Euro area, economic restrictions are likely to be extended well into March, although measures to be relaxed very gradually as new cases keep on declining. The U.K annual GDP declined about a 9.9% drop. However, the economy grew at an annualized rate of 4.0% in the final quarter of the year, aided by government spending and an uptick in business investment.
The APAC benchmark Indexes were mixed. The Australian Index ASX-200 and the Korean Kospi-100 Indexes were closed negatively about 0.6%. In contrasts, The other essential benchmark from the APAC region rose significantly from about 1.6% to 4.5% as a weekly gain. China’s Shanghai Composite Index CSE-50 outperformed.
Weekly market movement
Gold ended with a modest weekly loss of about -0.15% as a weekly loss. The Sentiment for the gold turns bearish for the week. Crude closed higher about 1.46% for the week.
The price of bitcoin (BTC) Bitcoin aims at $50K as more banks look to participate. Most of the surge came on Monday after electric vehicle maker Tesla disclosed that it had purchased $1.5 billion worth of bitcoin and will start accepting the cryptocurrency as a payment method for its cars. (https://www.cnbc.com/2021/02/08/tesla-buys-1point5-billion-in-bitcoin.html).
Sentiment Analysis
The below figures illustrates the news and social media sentiment trend for the week. The overall Sentiment turns modestly bullish for the week. However, The most global the Indexes still in the neutral sentiment mode for the week. The U.S Dow-30 Index is in the negative trend in the sentiment direction. On the other side, The Midcap Index Russel-2000 Index is in bullish sentiment trend.
The European Indexes CAC-40 and FTSE-100 are showing the strong uptrend in sentiment direction. Dax-30 and FTSE-MIB remain neutral.
The most APAC indexes turn neutral-positive sentiment trend for the week. Hongkong Index HIS-50 and India’s Nifty-50 and China’s CSE-50 Indexes continue to be bullish.
Sentiment Trend Chart
The following critical economic data refer to https://www.fxstreet.com/economic-calendar includes the small-business optimism report on Tuesday, inflation on Wednesday, and consumer confidence on Friday.
Sentiment Values
The following critical economic data refer to https://www.fxstreet.com/economic-calendar includes the February preliminary Markit Purchasing Managers’ Index, producer inflation, and retail sales growth.
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.
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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