This week, a new chapter, or new paradigm begins. Why do I say that? In the research I’ve done following the relationships between changes in social mood, the markets, and the news, I’ve found that the patterns found in the things we pay attention (i.e. top internet search trends) to on a daily basis show up in the markets and news stories about three days later. When one looks at the patterns in the top weekly search trends they show up in the markets and types of news stories about three weeks later.
The top search trends 3 weeks ago included Melania Trump and Chinese New Year. It was week number one of the Trump administration. It was also the beginning of the Year of the Fire Rooster. In the analysis of the pattern for this week two primary things show up. First, it’s a pattern of a “new paradigm.” We’re about to turn the page into our next collective “chapter.” This should show up as a change in the news cycle. There could be a new focus or new tone in what’s being reported. In the markets this should appear as new market behavior and/or a new direction. Second, there is a rise in the “vulnerability factor.” In the news, people may seem a bit more reserved or anxious. In the markets, this should appear as increased risk aversion. Finally, the mood pattern over the next few weeks shows that there’s a good chance that this new chapter will include increased attention on geopolitics and foreign affairs.
Above is a picture of this week’s internet search trends converted to four primary mood qualities. At MarketMood.net this is further converted to expected changes in stock market points and commodity prices, and discussed in our member trading room.
It’s a new day, a new week, and a new chapter. May yours be a good one!
The top search trends 3 weeks ago included Melania Trump and Chinese New Year. It was week number one of the Trump administration. It was also the beginning of the Year of the Fire Rooster. In the analysis of the pattern for this week two primary things show up. First, it’s a pattern of a “new paradigm.” We’re about to turn the page into our next collective “chapter.” This should show up as a change in the news cycle. There could be a new focus or new tone in what’s being reported. In the markets this should appear as new market behavior and/or a new direction. Second, there is a rise in the “vulnerability factor.” In the news, people may seem a bit more reserved or anxious. In the markets, this should appear as increased risk aversion. Finally, the mood pattern over the next few weeks shows that there’s a good chance that this new chapter will include increased attention on geopolitics and foreign affairs.
Above is a picture of this week’s internet search trends converted to four primary mood qualities. At MarketMood.net this is further converted to expected changes in stock market points and commodity prices, and discussed in our member trading room.
It’s a new day, a new week, and a new chapter. May yours be a good one!
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