Today's Nancai market sentiment index is 43.4, and the market investment enthusiasm has increased

Today's Nancai market sentiment index was 43.4, up from 39.2 in the previous trading day, and the market investment enthusiasm increased.

The Sentiment Index is made up of the following four indicators:

1.50 ETF options implied volatility

Today's value of the indicator is 14.90, and the indicator is currently in the low range of nearly a year, indicating that investors believe that the future market volatility is at a low level. The volatility of 50ETF options (formerly known as China Wave Index iVIX, also known as the fear index), the index has a negative correlation with the Shanghai Composite Index, but it is not absolute. The higher the index point, the more intense the volatility of the expected market outlook, and the lower the index point, the more stable the expected market outlook. The VIX is characterized by clusters of high volatility, usually at the high swings of the market, or at the lows and highs of the index. Then, the concentration of the VIX at the high of the stock index means the concentration of market risk, while the high VIX at the rapid decline of the stock index means the release of market risk. If the VIX index continues to rise and break through the extremes during the rapid decline of the stock market, it could signal a major turning point in the market – the risks have been unleashed to the extreme, and the stock market will begin to stabilize and rise.

2. Northbound funds

Today, the indicator value is -9.912 billion yuan. At present, the negative deviation of this indicator is relatively high, indicating that overseas investors believe that the A-share market tends to bottom out. As a judgment indicator of foreign investors on the A-share market, a positive cumulative purchase compared to the moving average means that the current market is relatively strong, a negative value indicates that the current market is relatively weak, and the deviation degree reflects the strength/weakness of the market, so there is a strong positive correlation with the Shanghai Composite Index.

3. Proportion of the transaction volume of the two financial institutions

Today's value of the indicator is 7.37%, and the indicator is currently in the high range of the past year, and it is believed that the current A-share market is relatively strong. The higher the indicator, the higher the leverage level, that is, the investor believes that the current market is stronger, and vice versa, it means that the investor believes that the market is relatively weak, so there is a strong positive correlation with the Shanghai Composite Index.

4. liter discount rate

Today's value of the indicator is -1.84%, and the indicator is currently in the low range of nearly a year, indicating that investors believe that the A-share market tends to bottom out. The higher the indicator indicates that investors believe that the current market is stronger, and the lower it is, it indicates that the market is relatively weak, so it is positively correlated with the Shanghai Composite Index.

In order to quantify investors' current sentiment towards buying stocks, based on the China Wave Index (iVIX) and VIX index, the Nancai quantitative team selected four major indicators and obtained the Nancai Sentiment Index by comprehensive weighting. The Nancai Sentiment Index ranges from 0-100, with lower indicating lower market investment enthusiasm and higher indicating higher market investment enthusiasm. The Nancai Sentiment Index helps market participants better understand and analyze the volatility risk and jump risk in the stock market, and the low market investment enthusiasm indicates that investors are too worried, and if the current market pricing is not high, it may be a buying opportunity. A high level of investment in the market indicates that investors are overly excited, and if the market is at a high level, the market may adjust. The release of the Nancai Sentiment Index is not only conducive to better risk management for investors, but also provides an effective reference for maintaining the stability and prosperity of the financial market.

For more information, please download the 21 Finance APP