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Tags behavioral finance indicator - bull bear indicator - bull bear psychology - crowd psychology - investor psychology - market prediction - market psychology - market reversal - ninjatrader - pattern recognition - system trading

We didn’t need a market sentiment indicator the past few days to tell us that the market was on edge. The European Central Bank waited until after market close last Friday to publish the stress test results. Although it came out better than expected, doubts were quickly raised because the test didn’t appropriately deal with the financial ramifications of a Greek default. Read more

Tags asset allocation - behavioral finance indicator - crowd psychology - market psychology - market reversal - market sentiment - risk on risk off - sentiment analysis - sentiment indicator - sentiment trigger point - sentiment volatility

The past 5 days we saw a gradual decline in market sentiment from 0.67 on June 30th to 0.55 on July 6th. In itself, the range between 0.67 and 0.55 is unspectacular because these values are close to a neutral range. Our review of more than 1.2 million news items over the past 6 years, identifies the average market sentiment value at 0.62 (financial journalists writing to a “long” oriented audience). Read more

Tags behavioral finance indicator - bull bear psychology - cognitive dissonance - crowd psychology - dax futures - derivatives trading - excessive investor optimism - investment strategy - market psychology - market sentiment - market trends - psychology trends - sentiment volatility - trading strategy

We have previously pointed out an astounding correlation between rising SentiTrade values and emerging DAX momentum. Today the SentiTrade indicator opened at 0,5. At 08.18 the sentiment quotient jumped to 0,6 and then 12 minutes later, at 08.30 to 0,65. From 8.45 to 10.30 we then see a sharp rise on the DAX index, from 7222 to 7282. Read more

Tags behavioral finance application - behavioral finance indicator - bull bear psychology - dax index - investor psychology - market prediction - market psychology - market sentiment - market sentiment values - pattern recognition - sentiment analysis - sentiment volatility - trading strategy

Market sentiment update: Last weeks sentiment saw values consistently above the 0.62 mark, SentiTrade’s statistical average value. This reflected a general relief following the dramatic events of the past weeks. A minimum of volatility in the sentiment undoubtedly also contributed to a strong recovery in market prices and indicate a continuation of the upward from last year. For now, we therefore hold on to our long position as we see room for further market advances. Read more

Tags behavioral finance indicator - bull bear - dax index - sentiment analysis - sentiment average - sentiment volatility