Mildly bearish Sentiment Index indicates sideways trade for STI: Heckyl
Heckyl has developed a Sentiment Index that analyses the potential impact of the sentiment on the value of Straits Times Index (STI) in real-time.
The Sentiment Index indicates bullish/bearish signals based on the crossover of fast and slow moving averages of the daily sentiment index value. This is done through an analysis of the news flow on the 30-largest public listed companies in real-time.
Our back-testing has indicated a strong positive correlation (0.75+), implying that the Heckyl Sentiment index is an alternative proxy for the Straits Times index.
Currently, Heckyl Sentiment Index for Straits Times index is in mildly bearish territory, indicating the sideways trade may continue.
Bullish Signal:
When short-term Sentiment (30-day average) rises above long-term (90-day average), green shading indicates likely uptrend the Straits Times index.
Bearish Signal:
When short-term Sentiment (30-day average) falls beneath long-term (90-day average), pink shading indicates likely downtrend for the 30-share index.
The Bottom-line:
Heckyl Sentiment Index is very useful tool to quantify bullish and bearish sentiment for STI. By tracking our Sentiment Index, traders and investors can not only identify patterns, but also spot the next bubble for the Singapore stock market.
To know more about Heckyl Sentiment Index, email us at info@heckyl.com
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