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Acertus Market Sentiment Indicator
The Acertus Market Sentiment Indicator (AMSI) is a stock market sentiment indicator that generates monthly sentiment indications ranging from 0 (extreme fear) to 100 (extreme greed). The indicator views sentiment as a continuum with anxiety and complacency representing less extreme and nuanced forms of fear and greed, respectively. Generally, a lower reading (80) suggests significant greed, while readings of 60-80 represent complacency. AMSI is constructed using five variables. In descending order of weight they are: Price/Earnings Ratio, a measure of stock market valuations; Price Momentum, a measure of market psychology; Realized Volatility, a measure of recent historical risk; High Yield Bond Returns, a measure of credit risk; and the TED spread, a measure of systemic financial risk. Each of these factors provides a measure of market sentiment through a unique lens, and weighted together they may offer a more robust indicator of market sentiment. AMSI is a dynamic and self-ad ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Market Sentiment
Market sentiment, also known as investor attention, is the general prevailing attitude of investors as to anticipated price development in a market. This attitude is the accumulation of a variety of fundamental and technical factors, including price history, economic reports, seasonal factors, and national and world events. If investors expect upward price movement in the stock market, the sentiment is said to be ''bullish''. On the contrary, if the market sentiment is ''bearish'', most investors expect downward price movement. Market participants who maintain a static sentiment, regardless of market conditions, are described as ''permabulls'' and ''permabears'' respectively. Market sentiment is usually considered as a contrarian indicator: what most people expect is a good thing to bet against. Market sentiment is used because it is believed to be a good predictor of market moves, especially when it is more extreme. Very bearish sentiment is usually followed by the market going u ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
TED Spread
The TED spread is the difference between the interest rates on interbank loans and on short-term U.S. government debt ("T-bills"). TED is an acronym formed from ''T-Bill'' and ''ED'', the ticker symbol for the Eurodollar futures contract. Initially, the TED spread was the difference between the interest rates for three-month U.S. Treasuries contracts and the three-month Eurodollars contract as represented by the London Interbank Offered Rate (LIBOR). However, since the Chicago Mercantile Exchange dropped T-bill futures after the 1987 crash, the TED spread is now calculated as the difference between the three-month LIBOR and the three-month T-bill interest rate. Formula and reading :\mbox = The size of the spread is usually denominated in basis points (bps). For example, if the T-bill rate is 5.10% and ED trades at 5.50%, the TED spread is 40 . The TED spread fluctuates over time but generally has remained within the range of 10 and 50 (0.1% and 0.5%) except in times of fi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Put/call Ratio
In finance the put/call ratio (or put-call ratio, PCR) is a technical indicator demonstrating investor sentiment. The ratio represents a proportion between all the put options and all the call options purchased on any given day. The put/call ratio can be calculated for any individual stock, as well as for any index, or can be aggregated. Readings Generally, a lower reading (~0.6) of the ratio reflects a bullish sentiment among investors as they buy more calls, anticipating an uptrend. Conversely, a higher reading (~1.02) of the ratio indicates a bearish sentiment in the market. However, the ratio is considered to be a contrarian indicator, so that an extreme reading above 1.0 is actually a bullish signal and vice versa. The lowest level of the index was 0.39x, set in March 2000 at the peak of the dot-com bubble The dot-com bubble (dot-com boom, tech bubble, or the Internet bubble) was a stock market bubble in the late 1990s, a period of massive growth in the use and adoptio ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Market Sentiment
Market sentiment, also known as investor attention, is the general prevailing attitude of investors as to anticipated price development in a market. This attitude is the accumulation of a variety of fundamental and technical factors, including price history, economic reports, seasonal factors, and national and world events. If investors expect upward price movement in the stock market, the sentiment is said to be ''bullish''. On the contrary, if the market sentiment is ''bearish'', most investors expect downward price movement. Market participants who maintain a static sentiment, regardless of market conditions, are described as ''permabulls'' and ''permabears'' respectively. Market sentiment is usually considered as a contrarian indicator: what most people expect is a good thing to bet against. Market sentiment is used because it is believed to be a good predictor of market moves, especially when it is more extreme. Very bearish sentiment is usually followed by the market going u ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
