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MARKET SENTIMENT
INTRODUCTION
The overall attitude of investors toward a
particular security or financial market is
referred to as market sentiment
It is the feeling of the market, as revealed
through the activity and price movement of
the securities traded in that market.
The rising prices indicate bullish market
sentiment and the falling prices indicate
bearish market sentiment
UNDERSTANDING MARKET SENTIMENT
Market sentiment is not always based on
fundamentals.
Day traders and technical analysts rely on market
sentiment, as it influences the technical indicators
they utilize to measure and profit from short-term
price movements
Emotion often drives the stock market, so market
sentiment is not always synonymous with
fundamental value.
FACTORS THAT AFFECT THE
MARKET SENTIMENT
1. The volume of trading
2. Expected volatility
3. The number of advancing versus declining shares
4. Survey based sentiment indices
5. New highs versus new lows
6. News and news analytics
7. Weather
8. Major political events
CONCLUSION
There are numerous ways to measure market
sentiment and get ahead of the market before big
moves occur
You can watch the market news today to get a better
understanding of the market sentiment
News and developments are never-ending in financial
markets; investors should try to take in as much as
possible and, more importantly, where it could be
going next
THANK YOU

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What is Market Sentiment?

  • 2. INTRODUCTION The overall attitude of investors toward a particular security or financial market is referred to as market sentiment It is the feeling of the market, as revealed through the activity and price movement of the securities traded in that market. The rising prices indicate bullish market sentiment and the falling prices indicate bearish market sentiment
  • 3. UNDERSTANDING MARKET SENTIMENT Market sentiment is not always based on fundamentals. Day traders and technical analysts rely on market sentiment, as it influences the technical indicators they utilize to measure and profit from short-term price movements Emotion often drives the stock market, so market sentiment is not always synonymous with fundamental value.
  • 4. FACTORS THAT AFFECT THE MARKET SENTIMENT 1. The volume of trading 2. Expected volatility 3. The number of advancing versus declining shares 4. Survey based sentiment indices 5. New highs versus new lows 6. News and news analytics 7. Weather 8. Major political events
  • 5. CONCLUSION There are numerous ways to measure market sentiment and get ahead of the market before big moves occur You can watch the market news today to get a better understanding of the market sentiment News and developments are never-ending in financial markets; investors should try to take in as much as possible and, more importantly, where it could be going next