StockMarketMoodToday.com has unveiled a revolutionary tool that helps investors and traders keep an eye on the overall stock market mood to try to make better stock trading and investing decisions.
“The second week of June 2022 has been a nightmare for stock investors. This sounds dreadful because a part of the loss could have been prevented or at least mitigated by taking into account the stock market mood. That’s where Stock Market Mood Today comes into the picture,” explains Frans, manager of Stock Market Mood Today.
“When people’s mood goes down, there is a lower willingness to buy stocks. People rather start to think of selling,” explains Frans. Various studies have already shown a link between mood bias and stock returns. Researchers assert that psychological factors have an effect on price formation—sudden changes in investor mood impact stock market reaction.
The unique and game-changing Market Mood Model shows that when the stock market is in a “good mood,” the probability of the overall stock market going up becomes higher.
On the other hand, when the Market Mood Model says the stock market is in a “not so good mood,” this signifies that the probability of the overall stock market going up becomes lower. “While this can lead to lower stock prices on average, this is not always the case,” explains Frans. This time, however, on June 9th, the mood switch from “good mood” to “not so good mood” resulted in significantly lower stock prices across the world.
Hence, “mood” significantly impacts stock prices in the short-term, argues Frans. While he stressed that measuring stock market mood is different from attempting to forecast the stock market, Frans emphasized that it is a helpful tool to become a more informed investor or trader.
Those interested in the topic and want to get notified (free) when the Market Mood Model sees a change in market mood may visit StockMarketMoodToday.com to get started.