Sentiment

GET YOUR FREE TRADING GUIDE
SSI-IMAGE
How to use
Speculative Sentiment Index
in your trading
To Receive Your Free Guide, Please Complete the Form.

Confirmation

Thank you for your request. Click Here to Access your SSI Guide

See real time SSI on the FXCM Trading Station, click here now.
You have successfully signed up for a demo account. Check your Email!

Thank you.

Our demo registration is currently unavailable due to routine weekend maintenance. When the system again becomes available, a representative will send your demo account login information to the e-mail address you provided.

Introduction to Sentiment Index
Updated: Index is reported every Thursday.
Symbol Present %L / %S % COI Sgnl
Table Key
Bearish
Signal
Bullish
Signal
Mixed
Signal
%L 
Long %
 %S
Short %
% COI
Chg. Open Interest %

Facts Change and We Change with Them – Euro Looks like a Buy

Quantitative analysis, algorithmic trading, and retail trader sentiment.

Connect via:

Facts Change and We Change with Them – Euro Looks like a Buy

Why and how do we use the SSI in trading? View our video and download the free indicator here

EURUSD – Retail FX traders are once again net-short the Euro versus the US Dollar, and a contrarian view of ‘crowd’ sentiment points to further EUR/USD gains. This stands in clear contrast to just two days ago—traders had previously flipped in the opposite direction.

It has admittedly been difficult to form a lasting bias on the Euro as it sticks to a choppy range versus the US Dollar. Key resistance near $1.1185 could mark a key test for the EUR/USD, and a break higher would likely force a rally towards range highs near $1.14 and eventually $1.16. Retail trader sentiment currently favors further strength, and yet it is clear the ‘crowd’ has been quick to switch directions in just the past week of trading.

We see risks of further Euro gains in the near term, but it would take a substantive break above key resistance to call for a larger EUR/USD uptrend.

To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.

Contact David via Twitter at http://www.twitter.com/DRodriguezFX



Forex Sentiment Turns on a Dime - Watch Key Yen Risk

Quantitative analysis, algorithmic trading, and retail trader sentiment.

Connect via:

Forex Sentiment Turns on a Dime - Watch Key Yen Risk

Why and how do we use the SSI in trading? View our video and download the free indicator here

USDJPY– Retail FX traders are once again heavily long the US Dollar versus the Japanese Yen—a sharp shift from just a week ago—and a contrarian view of crowd sentiment points to further USD/JPY weakness. Last week we noted the opposite as traders had turned net-short USD/JPY, but that proved quite short-lived. Now we are far more circumspect as the Japanese Yen nears critical resistance (USD/JPY support) ahead of key US Federal Reserve and Bank of Japan interest rate decisions.

The larger trend favors Dollar weakness against the Yen and indeed a contrarian view of retail sentiment acts as a confirmation of the downtrend. Yet it will be very important to watch the USD/JPY exchange rate’s next moves ahead of critical event risk and a test of key technical levels.

See next currency section:XAUUSD - Gold Prices Face Key Risk of Turn Lower

Written by David Rodriguez, Senior Strategist for DailyFX.com

To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.

Contact David via Twitter at http://www.twitter.com/DRodriguezFX



British Pound Likely to Fall, but Caution Advised

Quantitative analysis, algorithmic trading, and retail trader sentiment.

Connect via:

British Pound Likely to Fall, but Caution Advised

Why and how do we use the SSI in trading? View our video and download the free indicator here

GBPUSD– Retail FX traders continue to buy into British Pound weakness versus the US Dollar, and a contrarian view of ‘crowd’ sentiment warns that further GBP/USD losses are likely. From a risk-to-reward perspective, however, we see key reasons for why traders might wait to sell the British Pound. Namely: extremely stretched positioning warns of the potential for sharp near-term rallies.

Of course sentiment extremes are only clear in hindsight, and we may ourselves wait for a substantive turn in retail FX trader sentiment to call for a larger GBP bounce.

See next currency section: USDJPY - Forex Sentiment Turns on a Dime - Watch Key Yen Risk

--- Written by David Rodriguez, Senior Strategist for DailyFX.com

To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.

Contact David via Twitter at http://www.twitter.com/DRodriguezFX



Australian Dollar Likely to Hit Fresh Highs

Quantitative analysis, algorithmic trading, and retail trader sentiment.

Connect via:

Australian Dollar Likely to Hit Fresh Highs

Why and how do we use the SSI in trading? View our video and download the free indicator here

AUDUSD– Retail forex traders have sold aggressively into Australian Dollar gains versus the US Dollar, and a contrarian view of ‘crowd’ sentiment warns that the AUD/USD exchange rate may continue higher. Indeed, our data shows that traders are now at their most net-short the Aussie Dollar since the pair traded into yearly highs near the $0.7800 mark in April.

Until we see a substantive sentiment swing in the opposite direction, we see little reason to call for an Australian Dollar price turnaround. Instead we will look to buy into the most recent price break higher.

See next currency section: S&P - US Stocks Remain a Buy until this Changes

--- Written by David Rodriguez, Senior Strategist for DailyFX.com

To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link. Contact David via Twitter at http://www.twitter.com/DRodriguezFX



Gold Prices Face Key Risk of Turn Lower

Quantitative analysis, algorithmic trading, and retail trader sentiment.

Connect via:

Gold Prices Face Key Risk of Turn Lower

Why and how do we use the SSI in trading? View our video and download the free indicator here

XAUUSD – Retail FX traders have consistently bought into recent Gold Price weakness in US Dollar terms, and a contrarian view of ‘crowd’ sentiment points to further weakness. This stands in contrast to the broader multi-month uptrend for XAU/USD, but critical event risk in the days ahead suggests volatility is likely. Recent shifts in trader sentiment warn of the potential for a turn lower.

See next currency section:EURUSD - Euro Near Potentially Critical Support - Next Move is Key

--- Written by David Rodriguez, Senior Strategist for DailyFX.com

To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.

Contact David via Twitter at http://www.twitter.com/DRodriguezFX



US Stocks Remain a Buy until this Changes

Quantitative analysis, algorithmic trading, and retail trader sentiment.

Connect via:

US Stocks Remain a Buy until this Changes

Why and how do we use the SSI in trading? View our video and download the free indicator here

US S&P 500– Retail CFD traders recently hit a record net-short position in the SPX500, which tracks the fair value of the US S&P 500, and a contrarian view of crowd sentiment warns further gains remain likely. Indeed, our data shows there were a remarkable 10.2 retail short positions in SPX500 for every 1 long—a whopping 91 percent of all open positions were short. This eclipsed the previous record set just one month ago as the index traded to fresh yearly lows.

The clear caveat is straightforward—crowds are often their most net-short or net-long at key market turning points, and such heavily one-sided sentiment suggests price momentum may be stretched. Yet by definition these extremes are only clear in hindsight.

Until we see a substantial sentiment swing in the opposite direction, we see little reason to call for a worthwhile reversal in the high-flying US S&P 500.

See next currency section: EURUSD - Euro Remains Weak, but Sentiment Warns this may not Last

--- Written by David Rodriguez, Senior Strategist for DailyFX.com

To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.

Contact David via Twitter at http://www.twitter.com/DRodriguezFX



Free Demo Account Free Trading Guides
Real Time News Open FXCM Account
Trading Signals Live Trading Room
Advertisement

Real Time News


Advertisement