How do you feel towards financial markets? If you can answer that question, then you have sentiment towards a certain asset or market.
Market sentiment looks at investor’s positions in the market. Terms like long and short positions are often used to describe investor sentiment. If prices in a particular market are anticipated to keep rising, investors are said to be taking long positions or sentiment is bullish. But if price falls are predicted, investors are said to be taking short positions or sentiment is bearish.
There is a wise investment quote that says “When others are selling, buy. When others are buying, sell. Usually, of course, we do the opposite. When everyone else is buying, we assume they know something we don't, so we buy. Then people start selling, panic sets in, and we sell too,” said Jonathan Sacks, a leading philosopher who served as the Chief Rabbi of the United Hebrew Congregations of the Commonwealth. What this means is that we shouldn’t blindly invest in a stock just because everyone is buying or selling, thinking they are all correct or know something that we don’t. However, understanding market sentiment can be a powerful tool for investors and analysts to gain a comprehensive view of the current state of sentiment across all markets.
The data updates every 15 mins, meaning that sentiment comparisons are made against the last 0-15 mins to allow for the ability to spot recent market movements. Use the toggles to further customize the visual.