Stocks Extended the Gains! The Sentiment is Puzzling!

Global stocks extended the gains for the week. The U.S top benchmark indexes S&P500 and Dow-30 posted gains of about 1%. The midcap index Russel-2000 rose modestly. On the other hand, the technology index Nasdaq-100 ended with a negative note.

Despite the pandemic’s persistence and rising inflation, the U.S market posted gains in double-digit for 2021. The U.S large-cap stocks outperformed. The growth stocks outperformed the value stocks in the large-cap boundaries, but vice versa on the small-cap level.

In holiday-shortened trade, European stocks gained as omicron fears faded and investor optimism about the economy grew. Daily Covid-19 infections hit new highs over the holidays in France, the United Kingdom, Italy, and Spain, among other nations, due to the new omicron variant. The top benchmark indexes closed higher for the week, about 0.17% to 1.22%.

Japan’s stock market returns were subdued over a holiday-shortened week. Most APAC benchmark indexes closed higher for the week, about 0.03% to 2.06%. The Indian NSE index Nifty-50 outperformed. On the other hand, the Korean index Kospi-100 declined over 1% as a weekly loss.

Underlying weekly market movement

Underlying-Weekly-1-3-2022-Stocks Extended the Gains

Oil prices climbed another 1% for the week. The U.S Oil price currently traded around $75.9 per barrel. Gold extended as a flat movement.

Sentiment Analysis

Stocks extended the gains. However, the overall sentiment continued with the mix for the week. The U.S S&P-500 index turned into the negative sentiment trend for the week. On the other hand, The Industrial index Dow-30 shows an uptrend for the week. The rest are in dim view.

The European indexes were in the mixed sentiment direction for the week. The London index FTSE-100 and the French index CAC-40 show a modest uptrend in sentiment direction for the week. On the other hand, the indexes Dax-30 and FTSE MIB shows a prominent negative trend.

For the week, the sentiment trend for most APAC benchmark indices leaned toward an optimistic outlook. However, the Indian index Nifty-50 and the Australian index ASX-200 show an unbiased view. 

Sentiment Trend

Sentiment Trend Chart-1-3-2022-Stocks Extended the Gains

The following important economic indicators and earnings reports, which have the ability to alter current sentiment, may determine the market this week. Which include the Unemployment Rate and Consumer Credit. (https://www.fxstreet.com/economic-calendar)

Sentiment Values

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

Buy & Sell Signals

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-1-3-2022-Stocks Extended the Gains

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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