Stocks Rebound! The Sentiment Remain Mixed!

On the evidence that the new omicron variant of the coronavirus might not be as devastating as anticipated, U.S stocks rebounded and closed higher for the week, up 1.65 % to 3.19 %. The FDA has approved two new COVID-19 medications prescription only to persons who are infected with the virus. The Nasdaq 100 technology index beat the rest of the market.

Since the Omicron variant’s debut in late November, the market has followed inconsistently. In the first and second quarters, the US economy grew at annual rates of 6.4 % and 6.7 %, respectively. The economic data released this week was primarily positive. In November, durable goods orders increased 2.5 %, exceeding expectations and posting the most substantial result since May.

Despite the COVID lockout and stricter restrictions in most European nations, the stock climbed sharply, boosted by a report from manufacturer Moderna indicating that lab tests of their COVID-19 vaccine booster dose had proved effective against the omicron version. As a weekly gain, the top European benchmark increased over 1.5 %.

After a dramatic decline last week, most APAC benchmark indexes crept upward. Last Monday, Japanese stocks fell sharply before recovering in the second half of the week. Following the central bank’s well-telegraphed key rate drop for the first time in 20 months.

Chinese markets were barely altered as of Thursday’s close from the start of the week. On Christmas Eve, Australian shares closed higher amid broad gains as investors shrugged off concerns about the economic impact of the Omicron coronavirus variety.

Underlying weekly market movement

Underlying-Weekly-12-27-2021-Stocks Rebound

Oil prices recovered from the early losses and climbed over 4% as a weekly gain. The U.S Oil price currently traded around $73.72 per barrel. Gold extended the gain about 0.4%.

Sentiment Analysis

Stocks rebound. For the week, the overall sentiment is still mixed. The neutral forecast for the week dominated the top US benchmark indexes. The Dow-30 index, on the other hand, is marginally slanting negative in sentiment for the week.

The mood trend for European benchmark markets has shifted to the downside. The Italian index FTSE-MIB, on the other hand, has a neutral outlook for the week.

The APAC benchmark indexes continue to have a mixed mood trend. The CSE-50, Kospi-100, and Nikkei-225 indexes have all turned bearish this week. The Australian index ASX-200, on the other hand, is showing a bullish mood trend for the week. The rest is unaffected.

Sentiment Trend

Sentiment Trend Chart-12-27-2021-Stocks Rebound

This week’s market will be determined by the following crucial economic indicators and earnings releases, which have the potential to affect the present sentiment. Home prices, pending home sales, and weekly unemployment claims statistics will be announced over the week.(https://www.fxstreet.com/economic-calendar)

Sentiment Values

Sentiment Values-12-27-2021-Stocks Rebound

Note: The news sentiment data is the most useful additional overlay for your existing models to improve the performance further.

Buy & Sell Signals

Stocks rebounded. The below table shows the buy/sell signals generated based on InfoTrie’s proprietary Investment/ Trading models. These models were developed using 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-12-27-2021-Stocks Rebound

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, don’t hesitate to contact us with the information provided below.        

contact@infotrie.com

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InfoTrie Financial Solutions Pte Ltd, Singapore

Sureshkumar Ramani +65 93376035

Frederic GEORJON +33 (0)6 1304 0600


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