Basic explanation of the moodix market sentiment indicator construction
Categorizing breaking news We categorize all breaking news according to its content into topics. For example, all Fed-related news is stored in the FED topic category. All macro news is stored in the macro topic category, etc. We further use the measured news sorted...
Coverage and speed Moodix measures live from 08:00 UTC to 22:00 UTC (full EU and US sessions). Asian‑session headlines are analysed retrospectively each morning. Most items are processed in under four minutes; only ambiguous cases take up to 15 minutes to resolve....
Constructing the Moodix Index™ The Moodix Index™ is crucial for constructing all other parameters including Sentiment waves (see below). For any period of time (intraday, week, month, YTD) the Moodix Index is the running sum of all Impact Scores recorded inside the...
Market memory: how long news matters Any positive or negative breaking news only affects the market for a certain period of time. Unless the news or the entire topic to which the news belongs has further major developments, the market tends to focus on it for a...
From price spike to matched headline: 1. Detect the move: Moodix continuously watches ES. A sudden gap or spike flags a potential news reaction.2. Locate the cause: It inspects the headlines published in the same minute (typically 3–4 items; dozens during EU and US...
Why the measurement takes place here? All reactions are measured in the ES futures contract (S&P 500). ES trades 23 hours a day, is deep enough for billion‑dollar flows, and updates within milliseconds—ideal conditions for capturing market responses around the...
Why breaking news / market-moving news are the starting point: Moodix measurement is based on the thesis that most major market movements and trend changes in financial markets are the result of the impact of some of the endless stream of chaotically emerging news....