U.S Stocks on Correction! The Sentiment Turns into Mixed Mode!

U.S stocks on correction. The benchmark indexes in the United States finished the week in positive territory. However, the Russell-2000 small cap index fell by more than -1.5 percent on a weekly basis. Energy stocks rose as international oil prices surpassed USD 90 per barrel, owing in part to Russia’s continuous massing of troops around Ukraine’s border.

According to Fact Set, fourth-quarter profits at S&P 500 businesses were predicted to grow by more than 24 percent as of Friday, based on companies that had reported thus far and predictions for firms that had not yet declared earnings. Policymakers of the Federal Reserve in the United States stated that they are still on track to begin raising short-term interest rates at their next policy meeting in mid-March, as expected.

The European benchmark indexes declined about, -0.37 percent to -1.83% as a weekly loss. Europe’s stocks sank for the fourth week in a row, extending losses caused by mounting concerns about interest rate hikes and escalating tensions between Russia and the West.

The APAC benchmark tumbled for the week about, -2.62% to -6%. The Korean index Kospi-100 underperformed.  Chinese stocks fell ahead of the weeklong Lunar New Year holiday, as Jerome Powell’s hawkish tone following the United States Federal Reserve’s policy meeting raised expectations for faster monetary tightening.

Underlying weekly market movement

Underlying-Weekly-1-31-2022-U.S Stocks on Correction!

Oil prices have risen for the sixth time in a row. Oil surged another 2.5% for the week, lingering near 7-year highs set the previous day, on supply concerns and geopolitical tensions in Eastern Europe and the Middle East.

Sentiment Analysis

U.S stocks on correction. The overall mood shifts to a mixed mode. In terms of sentiment, the technology index Nasdaq-100 has turned positive. The rest of the indices are unbiased.

In terms of sentiment, the European benchmark indexes CAC-40 and Dax-30 have gone positive. The remainder is unaffected. The Italian index FTSE-MIB, on the other hand, is trending lower.

The mood trend for the majority of APAC benchmark indexes has shifted to neutral. However, the indices HSI 50 and China’s SSE 50 indices are also showing a strong negative trend for the week.

Sentiment Trend Chart-1-31-2022-U.S Stocks on Correction!

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

Sentiment Values

Sentiment Values-1-31-2022-U.S Stocks on Correction!

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-1-31-2022-U.S Stocks on Correction!

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

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