Market Regime Indicator
Press the below button to join for Free our Telegram channel where you can find the daily updated current market regime and use this information to better control your operativity in the different stocks market / related ETF:
The Resonance QuantLab Market Regime Indicator is a free tool that analyzes daily the VIX index and its futures to determine the current market sentiment, categorized into four regimes: Bullish, Turbulent Bullish, Scared, and Bearish.By tracking the daily market's 'fear' levels, it provides a crucial proxy for estimating the US stock market's likelihood of rising or falling. Following this indicator is like having a macro-radar and helps you better control your stock or ETF operativity by adjusting your strategy to the prevailing market environment staying aligned with institutional sentiment. It is daily updated and can be used to identify general rise trends or deep fall risks, informing both long and short-term decisions. For value investors, it can signal discounted buying opportunities during Scared or Bearish regimes.
• This indicator of Market Regime status is obtained using VIX index and its futures contracts considering different levels of contango and backwardation.
• The above mentioned ratios of VIX values define 4 levels of operators’ “fear” that allow to identify respective market regimes (1. Bullish, 2. Turbulent Bullish, 3. Scared, 4. Bearish) each with different probabilities for Stock Prices to rise or fall
• VIX is an Index of the volatility of US market and can give very useful information about the status of US stock market (more info here). Further elaboration of this index and its derivatives could be used as a proxy to estimate Stock Markets Regimes and their likelihood to rise or fall
• Indicators built ways similar to our proprietary one widely used in big investment banks and hedge funds.
Details on the four market regimes:
-
Bullish or Turbulent bullish means that the overall market status in positive and bullish, the stock you picked (or may want to pick) is likekly to move within a general rise trend
-
Scared means that the overall sentiment is degrading and a rise is very unlikely
-
Bearish means the the overall market sentiment is very pessimistic and a significant and deep fall may happen, in this case we suggest to be very careful in opening new Long positions that you want to keep for a short term
For advanced users only: if you are a mid-long term value investor, this indicator can be used also to indentify in Scared and Bearish regimes opportunities for buying Stocks/ETF at interesting discounted prices or selling them for a short time.
Please note that a single market regime can last for weeks and even months.
Disclaimer
Resonance QuantLab provides these information as educational financial services only that do not represent in any sort a financial advice. Any and all liability for risks resulting from investment transactions or other asset dispositions carried out by the customer based on information received or a market analysis is expressly excluded by Resonance QuantLab. All the information made available here is generally provided to serve as an example only, without obligation and without specific recommendations for action. It does not constitute and cannot replace investment advice. We therefore recommend that you contact your personal financial advisor before carrying out specific transactions and investments. In view of the high risks, you should only carry out such transactions if you understand the nature of the contracts (and contractual relationships) you are entering into and if you are able to fully assess the extent of your risk potential. Trading with futures, options, forex, CFDs, stocks, cryptocurrencies and similar financial instruments is not suitable for many people. You should carefully consider whether trading is appropriate for you based on your experience, your objectives, your financial situation and other relevant circumstances.
Past performance gives no indication of future results.
We wish to point out to you some specific risks below that may result from trading with financial instruments.
All opinions, news, investigations, analyses, prices or other information or statements offered by Resonance QuantLab are provided in the form of general remarks and comments. They do not constitute investment advice. Resonance QuantLab assumes no liability for loss or damage, including, but not limited to, lost profits that may result directly or indirectly from the use or reliance on the abovementioned opinions, news, investigations, analyses, prices or other information offered by the company. In this regard we also refer to our General Business Terms and Conditions.
All the investment forms described here involve large financial risk. The past performance of a security, an industry, a sector, a market, a financial product, a trading strategy or the individual trade does not guarantee any future results or returns. As an investor, you yourself bear the full responsibility for your individual investment decisions. Such decisions should be based on an assessment of your financial situation, your investment objectives, your risk tolerance and your liquidity needs and should be discussed in advance with your personal financial advisor in case of doubt.