Friday, February 28, 2014

World in Crisis; U.S Government and People not immune

Update 2 March 2014: This was posted hours *before* the Ukraine crisis occurred.
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This is a BIG ONE, and it is imminent!

 
(click to enlarge)
 

The above chart shows that a U.S. disaster is imminent that could be on the scale of Boston Marathon or Hurricane Sandy.  The Arapahoe High School shooting, and the recent cluster of ice storms were just a warm up; they did not sufficiently resolve the “disaster pressure.” 
 
Also, the usual indicators of scale (see chart below) do not show large scale damages for any of the normally anticipated disaster types.  Because of this, we am referring to the event as a major “crisis.”
 
(click to enlarge)

 The type of crisis from the social mood pattern is NE.  The most likely types of events that show up with type NE are an economic disaster, an attack from another geopolitical entity, or if a natural disaster, a winter storm.  It’s also associated with anxiety and risk aversion.

 This must be the beginning of the big March/April crisis we have been watching for.  Whatever it is, we will all know shortly.

Volatility! : Outlook 28 February '14

Overview:  Collective mood indicates high risk of violence and increasing uncertainty globally.  A major crisis directly impacting the U.S. people and government is immanent.  Markets are extremely overbought relative to daily social mood signals.  A sell-off in the markets is likely.

Near Term: Mood signals have not rallied to record highs along with the markets (see Google trends chart below). and are breaking down below support.  A sharp drop in the near term is likely.
 
Long Term: Collective mood has been in a many month long process of topping.  Long term indicators are flashing "extreme caution," and are just below support, indicating a significant breakdown may be in progress.  The impact of human and natural disasters has been relatively low, but the trend is toward increasing impact.  Over time, this may wear on both mood and socioeconomic stability.
 
Today's Signals: -16.3 from Google Hot Trends, -0.8 from Themes in the News.  The projected stock market change for today is shown in the chart below.

  (click to enlarge)
 
 
Mood signals from Google Hot Trends: On a daily basis, markets tend to follow social mood more often than not.  Overall, social mood trend changes usually precede market trend changes.
 
 (click to enlarge)


Mood signals from themes in the news: News tends to follow the general trend of the market, but on a daily basis, can either lead or lag the movement of the market.    
 

(click to enlarge)
 
 
Note: data for U.S. social mood are scores in eight MoodCompass categories of Google Hot Trends, data for news are scores of top Google U.S. news stories.  Scores are converted to 4 inputs to the Market Mood Model.  The output is a conversion of mood data to estimated S&P point change.  Stock market data source: Google Finance.  This is posted as a public service, and to enhance exposure to our research.  It is not intended to be trading advice.

Wednesday, February 26, 2014

Outlook 27 February '14

Overview:  Collective mood indicates high risk of violence and increasing uncertainty globally.  Markets are extremely overbought relative to daily social mood signals.  A sell-off in the markets is likely. 

Near Term: Mood signals have not rallied to record highs along with the markets (see Google trends chart below). and are breaking down below support.  A sharp drop in the near term is likely.
 
Long Term: Collective mood has been in a many month long process of topping.  Long term indicators are flashing "extreme caution," and are just below support, indicating a significant breakdown may be in progress.  The impact of human and natural disasters has been relatively low, but the trend is toward increasing impact.  Over time, this may wear on both mood and socioeconomic stability.
 
Today's Signals: -7.6 from Google Hot Trends, -4.1 from Themes in the News.  The projected stock market change for today is shown in the chart below.

  (click to enlarge)
 
 
Mood signals from Google Hot Trends: On a daily basis, markets tend to follow social mood more often than not.  Overall, social mood trend changes usually precede market trend changes.
 
 (click to enlarge)


Mood signals from themes in the news: News tends to follow the general trend of the market, but on a daily basis, can either lead or lag the movement of the market.    
 

(click to enlarge)
 
 
Note: data for U.S. social mood are scores in eight MoodCompass categories of Google Hot Trends, data for news are scores of top Google U.S. news stories.  Scores are converted to 4 inputs to the Market Mood Model.  The output is a conversion of mood data to estimated S&P point change.  Stock market data source: Google Finance.  This is posted as a public service, and to enhance exposure to our research.  It is not intended to be trading advice.

Tuesday, February 25, 2014

Violent Uncertainty: Outlook 26 February '14

after market update: actual S&P +.04  Markets were extremely uncertain, and are now extremely overbought relative to daily social mood; a reckoning is very near.  

(click to enlarge)

- - -
Overview:  Collective mood indicates rising risk of violence and increasing uncertainty globally.  Markets are extremely overbought relative to daily social mood signals.  A slight sell-off in the markets is likely. 

Near Term: Mood signals have not rallied to record highs along with the markets (see Google trends chart below). and are breaking down below support.  A sharp drop in the near term is likely.
 
Long Term: Collective mood has been in a many month long process of topping.  Long term indicators are flashing "extreme caution," and are just below support, indicating a significant breakdown may be in progress.  The impact of human and natural disasters has been relatively low, but the trend is toward increasing impact.  Over time, this may wear on both mood and socioeconomic stability.
 
Today's Signals: -6.2 from Google Hot Trends, -0.1 from Themes in the News.  The projected stock market change for today is shown in the chart below.

  (click to enlarge)
 
 
Mood signals from Google Hot Trends: On a daily basis, markets tend to follow social mood more often than not.  Overall, social mood trend changes usually precede market trend changes.
 
 (click to enlarge)


Mood signals from themes in the news: News tends to follow the general trend of the market, but on a daily basis, can either lead or lag the movement of the market.    
 

(click to enlarge)
 
 
Note: data for U.S. social mood are scores in eight MoodCompass categories of Google Hot Trends, data for news are scores of top Google U.S. news stories.  Scores are converted to 4 inputs to the Market Mood Model.  The output is a conversion of mood data to estimated S&P point change.  Stock market data source: Google Finance.  This is posted as a public service, and to enhance exposure to our research.  It is not intended to be trading advice.

Monday, February 24, 2014

Outlook 25 February '14

after market update: actual S&P -2.49  Markets are becoming overbought relative to daily social mood; a reckoning is approaching.  Watch for the update near 12am ET.

(click to enlarge)

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Overview:  Collective mood indicates rising risk of violence globally and a willingness to take action toward a goal.  A moderate to strong sell-off in the markets is likely. 

Near Term: While markets have been rallying recently, social mood signals have continued to hover in a tight range (see Google trends chart below).  Mood signals are now breaking down below support indicating a sharp drop is likely.
 
Long Term: Collective mood has been in a many month long process of topping.  Long term indicators are flashing "extreme caution," and are just below support, indicating a significant breakdown may be in progress.  The impact of human and natural disasters has been relatively low, but the trend is toward increasing impact.  Over time, this may wear on both mood and socioeconomic stability.
 
Today's Signals: -5.0 from Google Hot Trends, -15.8 from Themes in the News.  The projected stock market change for today is shown in the chart below.

 (click to enlarge)
 
 
Mood signals from Google Hot Trends: On a daily basis, markets tend to follow social mood more often than not.  Overall, social mood trend changes usually precede market trend changes.
 
 (click to enlarge)


Mood signals from themes in the news: News tends to follow the general trend of the market, but on a daily basis, can either lead or lag the movement of the market.    
 

(click to enlarge)
 
 
Note: data for U.S. social mood are scores in eight MoodCompass categories of Google Hot Trends, data for news are scores of top Google U.S. news stories.  Scores are converted to 4 inputs to the Market Mood Model.  The output is a conversion of mood data to estimated S&P point change.  Stock market data source: Google Finance.  This is posted as a public service, and to enhance exposure to our research.  It is not intended to be trading advice.

Sunday, February 23, 2014

Global Violence and War: Outlook 24 February '14

 
Overview:  The global risk of violence, geopolitical escalation and/or new war talk is rising.  Collective mood indicates rising risk of violence globally and a willingness to take action toward a goal.  Mood signals for the day are strongly directional.  A strong sell-off in the markets is likely. 

Near Term: While markets have been rallying recently, social mood signals have continued to hover in a tight range (see Google trends chart below).  Mood signals are now breaking down below support indicating a sharp drop is likely.
 
Long Term: Collective mood has been in a many month long process of topping.  Long term indicators are flashing "extreme caution," and are just below support, indicating a significant breakdown may be in progress.  The impact of human and natural disasters has been relatively low, but the trend is toward increasing impact.  Over time, this may wear on both mood and socioeconomic stability.
 
Today's Signals: -29.6 from Google Hot Trends, -11.0 from Themes in the News.  The projected stock market change for today is shown in the chart below.

 (click to enlarge)
 
 
Mood signals from Google Hot Trends: On a daily basis, markets tend to follow social mood more often than not.  Overall, social mood trend changes usually precede market trend changes.
 
 (click to enlarge)


Mood signals from themes in the news: News tends to follow the general trend of the market, but on a daily basis, can either lead or lag the movement of the market.    
 

(click to enlarge)
 
 
Note: data for U.S. social mood are scores in eight MoodCompass categories of Google Hot Trends, data for news are scores of top Google U.S. news stories.  Scores are converted to 4 inputs to the Market Mood Model.  The output is a conversion of mood data to estimated S&P point change.  Stock market data source: Google Finance.  This is posted as a public service, and to enhance exposure to our research.  It is not intended to be trading advice.

Tuesday, February 18, 2014

Outlook 19 Feb '14

Overview:  Collective mood indicates rising uncertainty, and a struggle to hold onto optimism.  Mood signals for the day are unclear about direction in the markets with almost equal forces pulling in both directions. 

Near Term: While markets have rallied quite a bit in the past few days, social mood signals have been hovering in the 1740-1760 area (see Google trends chart below).     
 
Long Term: Collective mood has been in a many month long process of topping.  Long term indicators are flashing "extreme caution," and are just below support, indicating a significant breakdown may be in progress.  The impact of human and natural disasters has been relatively low, but the trend is toward increasing impact.  Over time, this may wear on both mood and socioeconomic stability.
 
Today's Signals: +3.5 from Google Hot Trends, -2.3 from Themes in the News.  The projected stock market change for today is shown in the chart below.



 (click to enlarge)
 
 
Mood signals from Google Hot Trends: On a daily basis, markets tend to follow social mood more often than not.  Overall, social mood trend changes usually precede market trend changes.
 
 (click to enlarge)


Mood signals from themes in the news: News tends to follow the general trend of the market, but on a daily basis, can either lead or lag the movement of the market.    
 

(click to enlarge)
 
 
Note: data for U.S. social mood are scores in eight MoodCompass categories of Google Hot Trends, data for news are scores of top Google U.S. news stories.  Scores are converted to 4 inputs to the Market Mood Model.  The output is a conversion of mood data to estimated S&P point change.  Stock market data source: Google Finance.  This is posted as a public service, and to enhance exposure to our research.  It is not intended to be trading advice.

Monday, February 17, 2014

Rising Uncertainty: Outlook 18 Feb '14

Overview:  Collective mood indicates rising uncertainty, and a struggle to hold onto optimism.  Mood signals for the day indicate a rally in the markets is likely, yet markets are extremely overbought relative to daily mood signals which could limit further gains. 

Near Term: While markets have rallied quite a bit in the past few days, social mood signals have been hovering in the 1740-1760 area (see Google trends chart below).     
 
Long Term: Collective mood has been in a many month long process of topping.  Long term indicators are flashing "extreme caution," and are just below support, indicating a significant breakdown may be in progress.  The impact of human and natural disasters has been relatively low, but the trend is toward increasing impact.  Over time, this may wear on both mood and socioeconomic stability.
 
Today's Signals: +1.5 from Google Hot Trends, +9.5 from Themes in the News.  The projected stock market change for today is shown in the chart below.

 (click to enlarge)
 
 
Mood signals from Google Hot Trends: On a daily basis, markets tend to follow social mood more often than not.  Overall, social mood trend changes usually precede market trend changes.
 
 (click to enlarge)


Mood signals from themes in the news: News tends to follow the general trend of the market, but on a daily basis, can either lead or lag the movement of the market.    
 

(click to enlarge)
 
 
Note: data for U.S. social mood are scores in eight MoodCompass categories of Google Hot Trends, data for news are scores of top Google U.S. news stories.  Scores are converted to 4 inputs to the Market Mood Model.  The output is a conversion of mood data to estimated S&P point change.  Stock market data source: Google Finance.  This is posted as a public service, and to enhance exposure to our research.  It is not intended to be trading advice.

No Imminent U.S. Disasters - Pax did it

Since the end of January, a U.S. disaster or tragedy was waiting to happen (see post).  Although the latest big ice storm Pax fit the description of the type of disaster predicted by the social mood patterns, as described in the earlier post, it was unclear whether it would create sufficient "release" of "disaster pressure" (for lack of better words to describe it), or whether something else was right around the corner.  Today we can issue an all clear for imminent major U.S. tragic events.

Social mood data gave U.S. natural disaster fatality estimates of 18 though February 14, and 27 as of February 14.  As of 14 February, Pax death toll was estimated at 25.  There were record flight cancellations, a 100 car pile up in Pennsylvania, and economic losses from closures of shops, transportation, etc.  This article (Winter storm leaves 25 dead in US East Coast, more than 2100 flights cancelled) gives further details.  The Pax event fulfilled the scale of disaster supported by collective mood.

Below is the latest chart of the differential between social mood and mood themes found in the news.  The "orange line" referred to in the earlier post has been added to the chart after Pax.  This signifies the required release has occurred.

While disasters or tragic events can occur anywhere at anytime, there are no signals from collective mood for any imminent major tragic events within the United States.

 

Thursday, February 13, 2014

Party's about Over: Outlook 14 Feb '14

after market update: actual S&P +8.81  Markets are seriously overbought.  Will the rally continue much longer?  Watch for the update Monday near 12am ET.

(click to enlarge)

- - -
Overview:  Collective mood indicates the ending of a chapter, and a struggle to hold onto optimism that looks about to be lost.  Mood signals for the day indicate a sell off in the markets is likely.  We've been watching for a high impact U.S. disaster or tragic event since late January.  Will the current ice storm have enough impact to get us out of this disaster zone, or will pressure continue to build only to erupt in something bigger?  We will know in a few days.

Near Term: While markets have rallied quite a bit in the past few days, social mood signals have been hovering in the 1740-1760 area (see Google trends chart below).  The mood signal is now just below support which may indicate an imminent break down.   
 
Long Term: Collective mood has been in a many month long process of topping.  Long term indicators are flashing "extreme caution," and are just below support, indicating a significant breakdown may be in progress.  The impact of human and natural disasters has been relatively low, but the trend is toward increasing impact.  Over time, this may wear on both mood and socioeconomic stability.
 
Today's Signals: -11.7 from Google Hot Trends, -1.4 from Themes in the News.  The projected stock market change for today is shown in the chart below.

 (click to enlarge)
 
 
Mood signals from Google Hot Trends: On a daily basis, markets tend to follow social mood more often than not.  Overall, social mood trend changes usually precede market trend changes.
 
  (click to enlarge)


Mood signals from themes in the news: News tends to follow the general trend of the market, but on a daily basis, can either lead or lag the movement of the market.    
 

(click to enlarge)
 
 
Note: data for U.S. social mood are scores in eight MoodCompass categories of Google Hot Trends, data for news are scores of top Google U.S. news stories.  Scores are converted to 4 inputs to the Market Mood Model.  The output is a conversion of mood data to estimated S&P point change.  Stock market data source: Google Finance.  This is posted as a public service, and to enhance exposure to our research.  It is not intended to be trading advice.

Wednesday, February 12, 2014

Is Pax the Big U.S. Disaster?

The graph below shows the scale of disaster that is likely to occur if the anticipated disaster or tragedy occurs on 14 February or later (under that is the graph for before 14 February).  Will storm Pax claim another 10 or even more lives in the next day or two, or will pressure continue to build, creating an even larger disaster in another few weeks?  That is the current question being asked as the current social mood data is compared with previous disasters.
 
(click to enlarge)

(click to enlarge)

Since late January, after Storm Leon, a United States disaster has been "waiting" to happen.  The chart below shows the divergence between U.S. collective mood and mood themes in top U.S. news stories since July 2012.  Recently, there has been an amazing repeating occurrence of severe ice storms the next two times the line in this chart got into the same area as Leon.  Nika was bad, but Pax looks like it could be worst of all.

(click to enlarge)

Storm Nika did not relieve the "pressure" that would have been released if that was the disaster.   After the Boston Marathon bombing, the Navy Yard shooting of a few months ago, and even the Arapahoe High School shooting, there is a noticeable drop in the chart marked by an orange line.  This has not yet occurred in this cluster.

The most likely type of event expected, as indicated by current collective mood patterns is type NE.  This would probably be an economic event, or a Winter Storm if a natural event is the disaster.  Looking at the pattern occurring for this entire cluster, the most likely event would be type NE and SW.  This would likely be an international economic event that impacts the United States, a geopolitical escalation that the U.S. feels victimized by (e.g. act of war or internationally sponsored terrorist attack), or, if a natural event, a Winter Storm with heavy precipitation and winds.

Is Pax finally going to be the event that relieves this building pressure?  It certainly fits the type, and some are saying that Pax may be one for the history books, but our suspicions are that something else is still to come.  Yet, Pax could be the big disaster that will get rid of this growing monster of potential.  The only way to know for sure will be after the fact.  If a sharp drop shows up in the chart (i.e. the orange "release" lines) then we will know it was the big one.  Whatever shows up as the disaster or tragic event when it does appear, will impact us all on some level.  It will be something everyone talks about for days.
- - -
Update 2/14/14: Pax death toll is estimated at 25.  There were record flight cancellations, a 100 car pile up in Pennsylvania, and economic losses from closures of shops, transportation, etc.
Winter storm leaves 25 dead in US East Coast, more than 2100 flights cancelled.  Fatality estimates from social mood data (see charts at top) was 18 through February 14, and 27 if the event after February 14.  Something much bigger than Pax is coming if it was not "bad enough" to relieve the disaster pressure.  It fit the estimate, so perhaps this might be it.   In the next day or two we should know.

Outlook 13 Feb '14

after market update: actual S&P +10.6  Markets are seriously overbought, and a U.S. disaster is preparing to hit?  Will the rally continue much longer?

(click to enlarge)

- - -
Overview:  Collective mood indicates the ending of a chapter, and a desperate fight to hold onto optimism.  Mood signals for the day indicate a light rally in the markets is possible.  However, markets are extremely overbought relative to daily social mood signals.  We've been watching for a high impact U.S. disaster or tragic event since we learned that the last big ice storm (Nika) was not enough to dissipate the disaster pressure showing up in collective mood.  Will the current ice storm have enough impact to get us out of this zone, or is there more?  We will know in a few days.

Near Term: While markets have rallied quite a bit in the past few days, social mood signals are still hovering in the 1740-1760 area (see Google trends chart below).  The mood signal should break out in the next few days to give us a heads up on trend for the near term. 
 
Long Term: Collective mood has been in a many month long process of topping.  Long term indicators are flashing "extreme caution," and are just below support, indicating a significant breakdown may be in progress.  The impact of human and natural disasters has been relatively low, but the trend is toward increasing impact.  Over time, this may wear on both mood and socioeconomic stability.
 
Today's Signals: +7.0 from Google Hot Trends, +0.2 from Themes in the News.  The projected stock market change for today is shown in the chart below.

 (click to enlarge)
 
 
Mood signals from Google Hot Trends: On a daily basis, markets tend to follow social mood more often than not.  Overall, social mood trend changes usually precede market trend changes.
 
  (click to enlarge)


Mood signals from themes in the news: News tends to follow the general trend of the market, but on a daily basis, can either lead or lag the movement of the market.    
 

(click to enlarge)
 
 
Note: data for U.S. social mood are scores in eight MoodCompass categories of Google Hot Trends, data for news are scores of top Google U.S. news stories.  Scores are converted to 4 inputs to the Market Mood Model.  The output is a conversion of mood data to estimated S&P point change.  Stock market data source: Google Finance.  This is posted as a public service, and to enhance exposure to our research.  It is not intended to be trading advice.

Tuesday, February 11, 2014

Outlook 11 Feb '14

Overview:  Collective mood indicates increasing risk of violence, protests and terrorist activity.  Mood signals for the day indicate a moderate selloff in the markets is likely.  Yesterday's information confirmed suspicions that a high impact U.S. disaster or tragic event is within a week to ten days away. The big ice storm known as Nika along with power outages and state disaster declarations last week was not enough to dissipate the disaster pressure.  More details will be presented in a few days of likely event type and timing.

Near Term: The social mood trend had been turning down sharply, and bounced at support near S&P 1740 (see Google trends chart below).  It has recently broken down below that support indicating further downside in the markets is likely. 
 
Long Term: Collective mood has been in a many month long process of topping.  Long term indicators are flashing "extreme caution," and are just below support, indicating a significant breakdown may be in progress.  The impact of human and natural disasters has been relatively low, but the trend is toward increasing impact.  Over time, this may wear on both mood and socioeconomic stability.
 
Today's Signals: -5.1 from Google Hot Trends, -3.1 from Themes in the News.  The projected stock market change for today is shown in the chart below.

 (click to enlarge)
 
 
Mood signals from Google Hot Trends: On a daily basis, markets tend to follow social mood more often than not.  Overall, social mood trend changes usually precede market trend changes.
 
  (click to enlarge)


Mood signals from themes in the news: News tends to follow the general trend of the market, but on a daily basis, can either lead or lag the movement of the market.    
 

(click to enlarge)
 
 
Note: data for U.S. social mood are scores in eight MoodCompass categories of Google Hot Trends, data for news are scores of top Google U.S. news stories.  Scores are converted to 4 inputs to the Market Mood Model.  The output is a conversion of mood data to estimated S&P point change.  Stock market data source: Google Finance.  This is posted as a public service, and to enhance exposure to our research.  It is not intended to be trading advice.

Sunday, February 9, 2014

Violence and Volatility: Outlook 10 Feb '14

after market update: actual S&P +2.8  So far, markets have been ignoring the turndown in social mood.  Will it continue much longer?


(click to enlarge)
- - -
Overview:  Collective mood indicates increasing risk of violence, protests and terrorist activity.  Mood signals for the day indicate a moderate to sharp selloff in the markets is likely.  Today's information confirmed suspicions that a high impact U.S. disaster or tragic event is within a week to ten days away. The big ice storm known as Nika along with power outages and state disaster declarations last week was not enough to dissipate the disaster pressure.  More details will be presented in a few days of likely event type and timing.

Near Term: The social mood trend had been turning down sharply, and bounced at support near S&P 1740 (see Google trends chart below).  It has recently broken down below that support indicating further downside in the markets is likely. 
 
Long Term: Collective mood has been in a many month long process of topping.  Long term indicators are flashing "extreme caution," and are just below support, indicating a significant breakdown may be in progress.  The impact of human and natural disasters has been relatively low, but the trend is toward increasing impact.  Over time, this may wear on both mood and socioeconomic stability.
 
Today's Signals: -14.3 from Google Hot Trends, -14.2 from Themes in the News.  The projected stock market change for today is shown in the chart below.

(click to enlarge)
 
 
Mood signals from Google Hot Trends: On a daily basis, markets tend to follow social mood more often than not.  Overall, social mood trend changes usually precede market trend changes.
 
  (click to enlarge)


Mood signals from themes in the news: News tends to follow the general trend of the market, but on a daily basis, can either lead or lag the movement of the market.    
 

(click to enlarge)
 
 
Note: data for U.S. social mood are scores in eight MoodCompass categories of Google Hot Trends, data for news are scores of top Google U.S. news stories.  Scores are converted to 4 inputs to the Market Mood Model.  The output is a conversion of mood data to estimated S&P point change.  Stock market data source: Google Finance.  This is posted as a public service, and to enhance exposure to our research.  It is not intended to be trading advice.

Thursday, February 6, 2014

Outlook 7 Feb '14

after market update: actual S&P +23.6  Markets kept on going today, far exceeding the social mood signals' take on things, and in spite of a dreary payrolls report.


(click to enlarge)
- - -
Overview:  Collective mood indicates rising uncertainty and increased risk of violence, protests and terrorist activity.  Mood signals for the day indicate a continued selloff in the markets is likely.  The clear indication that the disaster pressure had been resolved is unfortunately missing.  It is not clear at this time whether or not there is still more to come.

Near Term: The social mood trend had been turning down sharply, but after briefly bouncing off support had been scraping along it near S&P 1740 (see Google trends chart below).  It has recently broken down below that support indicating further downside in the markets is likely. 
 
Long Term: Collective mood has been in a many month long process of topping.  Long term indicators are flashing "extreme caution," yet may be pausing at long term support.  The impact of human and natural disasters has been relatively low, but the trend is toward increasing impact.  Over time, this may wear on both mood and socioeconomic stability.
 
Today's Signals: -5.8 from Google Hot Trends, -11.5 from Themes in the News.  The projected stock market change for today is shown in the chart below.

(click to enlarge)
 
 
Mood signals from Google Hot Trends: On a daily basis, markets tend to follow social mood more often than not.  Overall, social mood trend changes usually precede market trend changes.
 
  (click to enlarge)


Mood signals from themes in the news: News tends to follow the general trend of the market, but on a daily basis, can either lead or lag the movement of the market.    
 

(click to enlarge)
 
 
Note: data for U.S. social mood are scores in eight MoodCompass categories of Google Hot Trends, data for news are scores of top Google U.S. news stories.  Scores are converted to 4 inputs to the Market Mood Model.  The output is a conversion of mood data to estimated S&P point change.  Stock market data source: Google Finance.  This is posted as a public service, and to enhance exposure to our research.  It is not intended to be trading advice.