Sentiment Indicator

AAA

DEFINITION of 'Sentiment Indicator'

A graphical or numerical indicator designed to show how a group feels about the market, business environment or other factor. A sentiment indicator seeks to quantify how various factors, such as unemployment, inflation, macroeconomic conditions or politics influence future behavior.

INVESTOPEDIA EXPLAINS 'Sentiment Indicator'

Sentiment indicators can be used by investors to see how optimistic or pessimistic people are to current market conditions. For example, a consumer sentiment index that shows pessimism may make companies less likely to stock up on inventory, because they may fear that consumers will not spend.

RELATED TERMS
  1. NY Empire State Index

    A seasonally adjusted index that tracks the results of the Empire ...
  2. Speculation Index

    An index that is derived from the ratio of trading volumes on ...
  3. Mutual Fund Cash Level

    The percentage of a mutual fund's total assets that are currently ...
  4. Specialist Short Sale Ratio

    A ratio used to determine the sentiment of specialists on the ...
  5. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  6. Bull

    An investor who thinks the market, a specific security or an ...
RELATED FAQS
  1. Why is the Put-Call Ratio important for investors and economists for tracking market ...

    While short-term traders often watch the put-call ratio as a technical indicator of buyer and seller power, investors and ... Read Full Answer >>
  2. How do I use the Nova/Ursa ratio?

    The Nova/Ursa ratio is a contrary indicator designed to gauge market sentiment among retail investors. The ratio gets its ... Read Full Answer >>
Related Articles
  1. Technical Indicators

    Investors Intelligence Sentiment Index

    This indicator can give a overall sense of bull and bear forces - learn what it is and how it's constructed.
  2. Active Trading Fundamentals

    The Flaws Of Using Mass Sentiment To Be Contrarian

    Like most allegedly sure-fire methods in the investment industry, this one has its flaws too.
  3. Fundamental Analysis

    4 Key Indicators That Move The Markets

    Find out what reports to watch in order to anticipate and react to market movements.
  4. Economics

    Make Money With The Consumer Cyclical And Staple Indicator

    Knowing the difference between what consumers need and what they want can help you target your stock picks to follow consumer buying trends.
  5. Options & Futures

    The Volatility Index: Reading Market Sentiment

    Using the Volatility Index can be essential for investing success.
  6. Technical Indicators

    Trade This High Probability Bollinger Band Pattern

    Bollinger Band box patterns set up profitable opportunities when trends give way to well organized trading ranges.
  7. Trading Strategies

    Know How To Manage Gaps On Your Trading Strategy

    Gaps generate profitable strategies right after they print, as well as during retracements that test those levels, often months or years later.
  8. Charts & Patterns

    Why These Are 2015's Most-Promising Bank Stocks

    Which bank stocks should offer the best bang for your buck in 2015? Possibly these, so read on.
  9. Chart Advisor

    Trade Healthcare Providers with this ETF

    In good times and bad times one of the best sectors for retail investors to look into is the healthcare providers. Here's an ETF to consider.
  10. Fundamental Analysis

    Is Apple's Stock Over Valued Or Undervalued?

    Despite several drawbacks, the CAPM gives an overview of the level of return that investors should expect for bearing only systematic risk. Applying Apple, we get annual expected return of about ...

You May Also Like

Hot Definitions
  1. Efficiency Ratio

    Ratios that are typically used to analyze how well a company uses its assets and liabilities internally. Efficiency Ratios ...
  2. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  3. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  4. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  5. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  6. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
Trading Center