Weekly Market Sentiment Report 1st January - 8th January 2023

The Weekly Market Sentiment Report: 01/01/2023 - 08/01/2023

— Important: As of January 2023, the report’s name switches from Coalescence to Weekly Market Sentiment Report. —

This report covers the weekly market sentiment and positioning and any changes that have occurred which might present interesting configurations on different asset classes with a specific focus on currencies. The below shows the table of contents of the report:

1. The Artemis Indicator: A Tactical Reversal Tool on the S&P500

   • Introduction to the Artemis Indicator

   • S&P500

   • Historical Track Record

2. The White Index: The Bullish Continuation Indicator

   • Introduction to the White Index

   • S&P500

   • Historical Track Record

3. Vision: The Long Short Polyvalent Indicator

   • Introduction to Vision

   • S&P500

   • Historical Track Record

4. The Inverted VIX: Seeing Divergence from Another Angle

   • Introduction to the Inverted VIX Strategy

   • S&P500

   • Historical Track Record

5. Bitcoin Tactical Sentiment Index: A Short-Term Reversal Indicator on Bitcoin

   • Introduction to the Bitcoin Tactical Sentiment Index

   • Bitcoin.

   • Historical Track Record

6. The AAII: A New Comer to the Sentiment Indicators’ Party

   • Introduction to the AAII Strategy

   • S&P500

   • Historical Track Record

7. The COT Meter: Simplifying the Commitmento of Traders

   • Introduction to the COT Report

   • The COT Meter

8. Important Legal Disclaimer

Main points:

• The Artemis indicator, the star of the the forecasts lately, is not showing any signals at the moment.

• The Bitcoin model is continuously scanning for new opportunities but considering the special volatility environment at the moment, the model is filtering the signals to get the best one.

• No strong signals are shown from the AAII sentiment indicator.

• The white Index has finally triggered a buy signal.

• Added a new indicator called the COT meter which will gradually have more assets and will be more developed.

1. The Artemis Indicator

The Artemis Indicator is born out of a transformation of the put-call ratio, a sentiment indicator published by the CBOE which can help with predicting the S&P500. It is a daily indicator.

The following Figure shows the recent signal chart.

The validity of signals is variable and depends on the appearance of a new signal.

Conclusion

At the moment, there is no new signal.

The next table shows the historical non-binding track record of the model using the back-testing rules described in the introductory post. Remember that past results are not representative of future results.

2. The White Index

Long-only traders who like to time the dips and follow the upside trend (during a bullish market) should monitor the White Index as it has been specifically designed for this purpose.