Investors sentiment changed from Greed to Neutral in one day
- 2 March 2023
- Posted by: Federica Montella
- Categories: eToro CopyTrader, Investing
Negative day for Wall Street
On Wednesday, the US stock market went down.
The S&P 500 finished at -0.47%, the Nasdaq ended the trading session at +0.66% and the Dow Jones closed slightly in profit at +0.02%.
The investors’ sentiment is neutral, as indicated in the graph below:
Sentiment indicator – Fear & Greed Index
The market sentiment is 49, in “Neutral” mode. It changed from Greed to Neutral in one day.
The investor’s sentiment has been declining, after reaching the peak at 78 (Extreme Greed) on 2 February.
US manufacturing data
Yesterday, the Institute for Supply Management’s Purchasing Managers’ Index (PMI) published the February data.
The PMI index value came in at 47.7, slightly above last month’s reading, but less than the expectation of 48.
February was the fourth month in a row of a manufacturing contraction, as indicated by an index less than 50.
The industrial companies said they saw a sign of more demand in the next month and possibly an increase in inflation.
Following the US PMI data, the investors’ fear of more aggressive interest rate hikes by the Federal Reserve drastically increased.
At the moment 30,6% of investors believe in a 0,50% interest rate hike at the next FOMC meeting on 22 March, as shown in the chart below:
The majority of investors (almost 70%), however, believe in a 25 basis point rate increase.
What to watch today
Today at 13:30 GMT, the weekly US Initial Jobless Claim will be published.
The data is expected to be at 195,000 while the previous data was 192,000.
Financial markets can be impacted, so there may be volatility.
Portfolio update
I am currently neutral and cautious about the stock market.
I hold long and short stock positions and aim to profit regardless of the market direction.
If you are already copying my portfolio, please keep the copy open.
If you are thinking of copying me, now could be the right time, if you can invest for the long term (years).
Remember to copy the open trades to optimize the copy.
Remember to set the stop loss on the copy at the minimum level, so you don’t get stopped if there is a correction.
Thank you, everyone. Have a nice day!
Steps to follow to copy my portfolio automatically:
1. Create an eToro account here: https://federicamontella.com/go/etoro/
2. Verify your account and make a deposit of at least 200 USD (you can deposit in any currency, like GBP and EUR)
3. Go to my profile page: https://federicamontella.com/go/etoro-passionforprofit/
4. Start the copy (copy open trades and set the lowest stop loss possible, to allow some movement)
5. Enjoy, it’s all automatic. You will make passive income 24/7
Let me know if you have any questions.
Federica Montella
eToro Popular Investor
Follow me on social media
