U.S Stocks Tumbled! The Sentiment Turns Neutral!

U.S stocks tumbled. Concerns about rising interest rates and economic growth pushed the S&P 500 Index to its largest one-year drop. The U.S Technology index Nasdaq-100 and small cap index Russel-2000 were dropped over -7% as a weekly loss.

For the week, a gauge of investors’ expectations for short-term volatility in the US stock market increased by more than 50%. The Cboe Volatility Index VIX has increased to roughly 29 from around 19 at the previous week’s finish. The employment numbers looked to result in the Treasury yield curve flattening.

The European benchmark indexes ended the week lower by between -0.65 per cent to -1.76 per cent. The critical elements were growing expectations that the European Central Bank (ECB) will increase interest rates this year and that the Bank of England would also need to tighten monetary policy. Core eurozone bond yields fell.

Most APAC benchmark indices declined for the week. The indexes Nikkei 225, ASX 200, Kospi 100 and Nifty 50 declined over -2%. The Nifty 50 index in India underperformed. On the other hand, the indexes HIS 50 and SSE 50 ended with a positive mark. Chinese markets gained ground last week as the government tightened monetary policy and pledged extra support for the country’s struggling property industry.

Underlying weekly market movement

Underlying-Weekly-1-24-2022-U.S Stocks Tumbled!

Oil added another 1.5% as a weekly gain. Bitcoin’s price plunged more than 10% this week, falling below $40,000 for the first time in nearly six months.

Sentiment Analysis

U.S stocks tumbled. The overall sentiment dominated by the neutral view. The U.S technology index slanted towards the negative direction. The rest remains flat.

The European indexes have a neutral outlook. However, the London index FTSE-100 turns in to the bearish trend in sentiment direction.

The mood trend for the majority of APAC benchmark indexes has turned to an unbiased stance. However, the Nifty 50 and China’s SSE 50 indices are also showing a strong negative trend for the week.

Sentiment Trend Chart-1-24-2022-U.S Stocks Tumbled!

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

Sentiment Values

Sentiment Values-1-24-2022-U.S Stocks Tumbled!

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

Buy & Sell Signals

The buy/sell signals generated by InfoTrie’s proprietary Investment/Trading models are shown in the table below. These models were built utilising technical, foundational, and quantitative methodologies, with the news-based sentiment score serving as a secondary overlay.

I tallied the random signals from different Trading/Investment models at InfoTrie.

Buy Sell-1-24-2022-U.S Stocks Tumbled!

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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