RavenPack COVID-19 Update
| May 07, 2020
The tide turns as key sentiment indices show compelling reversal insignia reflecting phase ‘opendown’ and rising prophylactic optimism.
Go To Coronavirus News Monitor
On May 1 the Worldwide Media Hype Index on our news monitor showed for the first time in months that less than half of all global news was about Covid-19.
Not since March 14 had the index fallen below 50%; it had been in decline ever since it peaked at 69.27% on March 30.
From a technical perspective, falling below the 50% could also represent a breach of the ‘neckline’ for a topping pattern on the Index. If so it may spell further weakness to come.
The Worldwide Sentiment Index has reversed on increased media optimism around Covid-19.
The index is close to completing a major technical criteria for signaling a bullish reversal - a set of two higher highs (HH) and higher lows (HL).
This is a strong marker the index could be starting a new uptrend. A close above -31 would provide further assurance.
Sentiment has improved, in part, due to lockdown measures easing, as reflected in the fall in news co-mentioning “stay at home” reported by our monitor.
Further, the development of the drug Remdesivir and heightened expectations of a breakthrough on the vaccine front may also have contributed to an improvement in sentiment.
About half a dozen vaccine prototypes are now embarking on human testing trials, including
by an Italian-U.S. team that was successful in creating an immune response in animal trials.
In a reflection of this increased vaccine chatter, the relevant topic inside the monitor has risen to a 2-month high.
This is a positive sign for an actual breakthrough
shows changes in news analytics often precede real-world events.
If there is a blackspot pleading caution it is rising fears of a ‘second wave’, reflected in the peaking on May 4 of the relevant news monitor topic chart. So take heed and stay safe!
It has been a volatile year for markets but what if traders could better time the ups and downs and actually benefit from the volatility?
Earlier on in the pandemic RavenPack investigated how it could help investors anticipate major sell-offs and one of the things it found was that a rise in stories reporting insiders selling their holdings provided an early warning of the coronavirus market crash in February.
Insiders are company executives who own shares in the company they work for. When they buy or sell these shares they have to register it with the SEC, whereupon the information is made public. News stories about insider transactions are then ingested by our platform.
Interestingly, further research has also uncovered the same effect when the S&P 500 bottomed on March 23, except in this case it was a rise in insiders buying that provided the warning markets were about to turn.
Please use your business email. If you don't have one, please email us at firstname.lastname@example.org.
We will process your personal data with the purpose of managing your personal account on
RavenPack and offering our services. You can exercise your rights of access, rectification,
erasure, restriction of processing, data portability and objection by emailing us at email@example.com. For more information, you can
Your request has been recorded and a team member will be in touch soon.
We consider incorporating sentiment signals from news, earnings call transcripts, and insider transactions to
boost the risk-adjusted returns, and revive factor performance.
We find stronger, more predictable market reactions when the words of company executives agree with their actions.
We have gathered 12 insights from 2021 research that can be leveraged in 2022.