Spectrum Markets, the pan-European trading venue for securitised derivatives, saw European retail investors were bullish on US indices last week, suggesting they were buying the dip.
Spectrum’s SERIX indicator of European retail investor sentiment (see below for more information on methodology) values for S&P and DOW both hit their month high, 119 and 116 respectively on 19th.
This suggests these retail investors were buying the dip in US stocks last week, due to the aggressive fall on Monday on concern a rebound in Covid cases would slow global economic growth.
“The sharp jump in SERIX values for these key US indices at a time when the wider market was down suggests European retail investors saw an opportunity to take advantage of the situation by buying the dip". said Thibault Gobert, Sales Executive at Spectrum Markets.
Calculating SERIX data
The Spectrum European Retail Investor Index (SERIX), uses the exchange’s pan-European trading data to shed light on investor sentiment towards current development in financial markets.
The index is calculated on a monthly basis by subtracting the proportion of bearish trades from the proportion of bullish trades, to give a single figure (rebased at 100) that indicates the strength and direction of sentiment:
Trades where long instruments are bought and trades where short instruments are sold by retails investors are both considered bullish trades, while trades where long instruments are sold and trades where short instruments are bought by retail investors are considered bearish trades. Trades that are matched by retail clients are disregarded. (For a detailed methodology and examples, please visit this link).
About Spectrum Markets
Spectrum Markets is the trading name of Spectrum MTF Operator GmbH. Headquartered in Frankfurt am Main, Germany, it is a pan-European trading venue for securitised derivatives aimed at financial institutions and their retail investors. Since launch, trading has been available in: Germany, France, Italy, Spain, Sweden, Norway, the Netherlands, Ireland, and Finland.
Regulated by BaFin and MiFID II compliant, the exchange uses a uniquely open architecture system to allow investors to trade with increased choice, control and stability. Through its pan-European ISIN, 24/5 trading services and its own proprietary venue, Spectrum enables a guaranteed baseline level of liquidity over a range of products and is able to swiftly and safely match a significant number of orders and process multiple quotes every second.
Further information can be found at spectrum-markets.com
T: +44 203 778 1103
All information contained herein is for information purpose only and addresses exclusively Members of Spectrum Markets and persons interested in becoming a Member of Spectrum Markets. Nothing herein constitutes an offer to sell or a solicitation of an offer to purchase any securitized derivatives listed on Spectrum Markets or any product described herein. Spectrum Markets does not provide financial services, such as investment advice or investment brokering. Prospective retail investors can trade such products only with their brokers. The information herein does not constitute investment advice or an investment recommendation. Any information provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. Turbo Warrants are complex financial instruments and investors may experience a total loss.