Rising Anxiety in N. America: 17 Dec 2015

As the outlook over the next few days shifts from belief-based and emotional themes to reality and fact-based themes, anxiety and feelings of vulnerability should be on the rise.



More Trouble Ahead? - 16 Nov 2015

It would be great if the bad news was over.  However, the corrective look of the recovery in social mood since the tragic attacks in Paris (see chart below) means that there is likely at least one more big downward move left in mood and market.

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Social Mood and Stock Market Abnormally MANIC!

Social mood (as well as the stock market) has ups and downs, but arising in the last couple of days, a MANIC spike is concerning.  The chart below shows a normal range of ups and down in social mood factors since August.  The spike showing up is clearly NOT NORMAL.  Manic mood often accompanies instability, protests, and sometimes terrorist activity.  A "crazy" news event of some type is likely.

 

Update: 31 Oct 2015 Russian jet downed by ISIS That definitely is Not Normal and terrorist activity.

 

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The stock market is clearly overly excited as well.  The daily social mood signal is at resistance and doesn't seem to be able to break through.  The stock market has continued to move higher in spite of the anxiety the public is experiencing. Either people are about to be feeling a whole lot better, or the market is going to hit a wall.

 



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Moving onward: Mood and Market Aug 23-29, 2015

There is a growing desire to move beyond the serious mood of the past week as this week moves forward.  However, there may still be some serious news very early in the week as the mood factors from last week (background of violent or volatile news and serious tone) reach their climax.

Market dropped sharply last week, 6.7% from Wednesday through Friday.  As of Saturday, social mood shows that markets are currently 3% oversold.  That is, they are 3% below where social mood would place them.  Markets could be confused as they shift direction early in the week, but a large 3% bounce would not be surprising as the desire to move beyond last week's big losses takes hold.

 

A Very Scary Week: Aug 16-22, 2015

Next week's news stories will be violent and volatile, and the mood in the U.S. extremely serious, according to social mood projections. 

The stock market the week of Aug 16 should see an end of a pattern.  The most likely move is sharply down at least through sometime on Friday.

 

A News Driven Week: Mood & Market Aug 9-15, 2015

 

This week is all about the news (or data), especially news outside of the United States, and building tension surrounding it.  People are feeling generally anxious as the week begins.  There should be a shift around Thursday as the background news becomes more volatile or violent, and people begin to feel more cautious.

 

The way this pattern plays out in the market is not exactly bullish, but is markedly different from the previous week.  There should be a noticeable shift on Thursday from what takes place on Monday through Wednesday.  Whether the "Aversion" taking hold on Thursday manifests as short covering in the stock market or a sell off will depend on how the market does on Monday-Wednesday.

 

Rising Uncertainty: Mood & Market Aug. 2-8, 2015

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Change is in the air, and uncertainty is rising, according to U.S. collective mood projections for the week of Aug 2.  Expect earlier understandings and assumptions to be challenged, and people to be even more challenging.  A background of international issues are likely to be in the news, and have the attention of U.S. people.

 

Markets could be extra confusing or constricted for much of this week.  Although there is the possibility of a market disruption of some type, overall, it looks like it would probably be a good week for traders to take a vacation.     

The big climax: Market Mood July 27-31, 2015

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Risk aversion reaches a peak the week of July 27 with a backdrop of violence in the news, according to this week's projected social mood pattern.  Spatial analysis shows risk aversion in the United States to be greater than the previous week, indicating further market losses are likely.  However, the bearish mood will not likely continue past this week, at least in the near term. 

 

A "new paradigm" pattern early in the week indicates that markets could attempt a new direction as early as late Monday.  Thursday and Friday volatility should pick up, and large moves are likely.   

 

Uncertainty vs. Hope: Market Mood July 13-17, 2015

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The week of July 13 is characterized by a struggle between uncertainty about the global situation and the desire to hope that everything is going to be OK.  This will create an unusually choppy (or whipsaw) condition in the markets.  Spatial analysis shows risk aversion in the United States to be slightly less this week than last week.  While conditions are not yet clearly bullish, they appear to be less bearish than the previous week.

 

 

Tentative optimism is projected to wane early in the week and be replaced by a nervous hope midweek.  By the end of the week, it may seem that it was too early to hope, as strong market moves return to the picture.

 

U.S. Market & Mood July 6-10, 2015

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According to social mood projections, Monday should be the most solidly bearish day for the stock market, and the middle of the week, the most clearly bullish or optimistic.  A major shift in the market pattern should take place near the end of the week at the same time that social mood shows increased instability of one type or another is likely to be a focal point of the news.  Spatial analysis shows that the most disruptive events are likely to occur outside of the United States.  Regardless, they should to get America's attention.

U.S. Market & Mood: June 29-July 2, 2015

Risk aversion may peak early in the week.  By midweek, a shift in the pattern shows a new mindset beginning to take hold. Market losses this week are likely going to be greater than last week's.


Social mood shows less willingness to cooperate and an increase in belligerence and willingness to challenge authority.  Tension is likely to lead to a climactic action either during this week or the following one.

Update July 2: Markets were down 1.1% this week.  This is a greater loss than the previous week's 0.5%.




 

U.S. Market and Mood: June 21-27, 2015

Change is in the air as the week begins.  Instability, large moves, and uncertainty are all likely themes (see chart left), especially in the first half of the week.  Tension and anticipation build near the end of the week. 

A large directional move is indicated in the markets this week.  The increasing sense of vulnerability (chart below, right) is most often associated with risk-aversion, decreased spending, and down markets.

U.S. Market and Mood (June 14-20, 2015)

The week begins with an effort to put on a positive, "yes we can" attitude.  There may be some lingering, ongoing economic concerns and domestic issues, but the sense is that they can be addressed and turned around.  Competing with this resolve to look at the bright side, is a background of destabilizing factors, some of which comes from outside the U.S.  People begin to get agitated and anxious as the week goes on.  Midweek could even see a "mild panic" or moment of passion (strong emotions), as a general sense of increasing vulnerability begins to take hold  By week's end, risk aversion is becoming more pronounced, and markets are getting more decidedly bearish.  People have fixed ideas and opinions of "the facts," and are more willing to talk about them.  Protests and demonstrations are on the increase.

Analysis of U.S.-China relations shows China posturing in a more aggressive tone near June 18.

U.S. Market and Mood (June 1-13, 2015)

Social mood patterns for the first week of June indicates anxiety and restlessness.  Markets should be choppy for the most part with little clear direction.  Sometime near the end of the first week or very early in the second week, a directional move should occur.  The most  likely direction is down, as this transitory pattern is most often associated with bearish markets and risk aversion.  Spatial analysis by the MoodCompass team shows economic concerns likely arising from outside the United States having some effect on U.S. markets (see The Crow's Nest blog entry for June).

By midweek the week of June 7 and continuing through the end of the week, a "new paradigm" pattern is in play.  This marks a new chapter in U.S. social mood.  Things should become a lot clearer as to global conditions and market direction as the week plays out.   A shift to this new outlook and new priorities will be in process.  Be ready for something different!

Analysis of U.S. - China relations shows a significant development near June 11.