Negative QE3 momentum
With SentiTrade you not only get a feel for the latest market sentiment and psychology, our tagclouds also automatically track which news events were the driving force behind the latest trends. Yesterday one could clearly see how a rapidly falling market sentiment (green line) pre-dated the market market trend. The falling sentiment momentum (red line) quantified the trend and by the time Bernanke delivered the disappointing news at 16.00, the market was already poised for a sell-off…
In the tag cloud generated from SentiTrade’s categorization of negative language, we see “Bernanke”, as well as “banks” and creditworthiness dominating the picture:
This time around, Bernanke signalled no imminent steps to aid the economy, in what looks to be a concerted effort from the Fed and the ECB to keep the pressure up on Spain and Greece. It was a typical market sentiment scenario that helped us to position ourself ahead of a know economic event.
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