The past few weeks, we published several posts on market psychology and how SentiTrade has detected frequent mood swings in financial news publications. Some eagerly reported on a “positive outlook” following the market recovery and “improving numbers” from the U.S. Others however, noted slowing Chinese growth, a “worse than expected” situation in Europe and uncertainty with regard to energy costs. Read more

Tags Greek default - market bottom - market recovery - merkhollande - noise level - positive outlook - vix

The current situation is frequently compared to the Lehman days. At SentiTrade, we looked a bit further into the data from 2008/09 and identified an interesting trend pattern. Once a downward sentiment trend reversed 15% from its low point, one may identify a positive change in market psychology. As for the Lehman scenario, we reached a low SentiTrade moving average of 0,48 on Dec. 11th 2008. Read more

Tags Greek default - Italian default - lehman - low point - sentiment data - trend detector - trend pattern