Showing posts with label international. Show all posts
Showing posts with label international. Show all posts

Thursday, July 2, 2015

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

(click to enlarge)
 

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.

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.

Saturday, February 1, 2014

Next U.S. tragedy: Is it the Superbowl?

(click to enlarge)

The Disaster Curve (see above) peaked on 31 January 2014.  This means that if the pattern continues as it has over the past couple of years, the next major U.S. tragic event is imminent.  The Boston Marathon bombing occurred 6 days after the peak immediately before it.  The Navy Yard shooting several months ago occurred only 1 day after the peak preceding it. 

The type of disaster or tragic event can take many forms, but the current social mood pattern can often give us clues.  The current pattern indicates that it will likely be type SW.  This is associated with international events, the military, acts of war, sports, and leadership (e.g. the President or high ranking U.S. leader).  Should there be a natural U.S. event on the horizon, type SW is most often associated with a volcano or flood.  Globally, there may be disasters or tragic events during this period that are also of this same type.

While sports is one of the listed probable types of events, and Superbowl Sunday is only two days away, that does not necessarily mean that the Superbowl will be subject to attack, yet it does merit a close watch.  It is likely that whatever occurs has an international component or leads to war or the brink of war.  We will have to see how this shapes up over the next few days.
- - -
Update 1 Feb '14: Here's the volcano, but not the U.S. thing yet.
                             Wow!  Another one!
Update 5 Feb '14: Storm Nika-- "flood" or heavy precipitation of ice and snow with near record power outages.