Overview of stock market mood and stock market sentiment indicators

stock market mood indicator

At StockMarketMoodToday.com you can follow up on 9 stock market sentiment or stock market mood indicators.  A description of each sentiment indicator is given below.  Most of these indicators are contrarian indicators ,  looking for either extreme bullish or extreme bearish readings which tend to coincide with tops or bottoms in the market.



The Graham Mood Index
The Graham Mood Index ( GMI ) is designed to get a sense of Mister Market's current mood.  Used as an allegory, Mr. Market is an imaginary investor devised by Benjamin Graham.  Mr. Market is a hypothetical investor who is driven by panic, euphoria, and apathy on any given day, and approaches his investing as a reaction to his mood.
Modern interpretations would describe Mr. Market randomly swinging from bouts of optimism to moods of pessimism.
https://www.stockmarketmoodtoday.com

The CNN Business Fear & Greed Index

The Fear & Greed Index ( F & G ) is a way to gauge stock market movements and whether stocks are fairly priced. The theory is based on the logic that excessive fear tends to drive down share prices, and too much greed tends to have the opposite effect.
https://edition.cnn.com/markets/fear-and-greed


The AAII Sentiment Survey
The AAII Sentiment Survey  ( AAII ) offers insight into the opinions of individual investors by asking them their thoughts on where the market is heading in the next six months and has been doing so since 1987.
Sentiment measures, such as survey responses, could flash warning signs, suggesting too many may be tilting toward higher rather than lower stock prices or vice versa.
https://www.aaii.com/sentimentsurvey


The Market Mood Index
The Market Mood Index ( MMI ) for Indian stock market was developed by a team of data analysts and finance experts at MarketPsych, a company that specializes in quantitative behavioural finance research. The index was first introduced in 2004 and initially, the Market Mood Index was based on a survey of investor sentiment, in which participants were asked to rate their level of optimism or pessimism about the stock market. However, as the MMI evolved, it began to incorporate more sophisticated methods of data analysis, including natural language processing, sentiment analysis, and machine learning algorithms.
https://www.tickertape.in/market-mood-index


The iSaham Market Mood Index
The iSaham Market Mood Index (  iSaham ) is a mood index for the Bursa Malaysia.  Investors can use the Market Mood Index to gauge overall market sentiment and make investment decisions accordingly.
https://www.isaham.my/market-mood


The NAAIM Exposure Index
The NAAIM Exposure Index ( NAAIM ) provides insight into the actual adjustments active risk managers have made to client accounts over the past two weeks.  It surveys its members concerning their firms’ overall equity exposure and this is used to compute the NAAIM Exposure Index. 
https://www.naaim.org/programs/naaim-exposure-index


The equity only Put / Call ratio
The put call ratio shows the ratio of open interest or volume on put options versus call options. The equity put call ratio can be an indicator of investor sentiment for the entire stock market.  Index options historically have a skew toward more put buying. This is because of the index put option hedging done by portfolio managers.
This is why the total put/call ratio is not the ideal ratio. Look at the equity-only ratio for a purer measure. 
A high equity put/call (0.7 and more) ratio can indicate fear in the markets.
https://www.cboe.com/us/options/market_statistics/daily



The VIX
The VIX ( VIX ) is a calculation designed to produce a measure of constant, 30-day expected volatility of the U.S. stock market, derived from real-time, mid-quote prices of S&P 500® Index (SPX) call and put options. On a global basis, it is one of the most recognized measures of volatility -- widely reported by financial media and closely followed by a variety of market participants as a daily market indicator.  Because of its tendency to move significantly higher during periods of market fear and uncertainty, another name for the VIX is the "fear index."  On the other hand  :  a decline in VIX normally accompanies a broad stock market rise.
https://www.cboe.com/tradable_products/vix/

The VIX Put / Call ratio
The VIX Put / Call ratio ( VIX P/C ) is a ratio that is most commonly viewed as a gauge of demand for bearish protection against a downturn in equities.  A low VIX P/C means threre is high demand for bearish protection.   If there is a lot of call buying on VIX on a certain day, then those traders are “predicting” that $VIX will rise, and thus the broad market will probabily fall. 
VIX options enable market participants to hedge portfolio volatility risk distinct from market price risk and trade based on their view of the future direction or movement of volatility.
https://www.cboe.com/us/options/market_statistics/daily