Analysing Client Sentiment Data

I’ve recently added some client sentiment formulas (from IG Index) to a financial prices Excel Add-in I am working on. What I find interesting is the much higher proportion of long positions across all asset classes.

Surprisingly the UKs FTSE100 is the least shorted of all the major stock indices.

In the FX world, IG clients are more long on all major pairs, regardless of whether they are effectively long or short the USD:


I will post this again with updated data, it will be interesting to see how it changes over time (I suspect it won’t actually change that much!).

Perhaps you could use changes in sentiment to trigger trade decisions and track performance over time. My gut feel is that it could be a good contrary indicator…..

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