I am creating a dashboard with a number of metrics. One of them is "Risk ON vs Risk OFF sentiment", where I follow 10 diversified tickers or asset classes that best represent each market sentiment. This is what I got so far: RISK ON: 1. QQQ 2. BTC 3. VWO 4. XLI 5. RISK OFF: 1. TLT 2. GLD 3. DXY 4. XLU or XLP (either should work well) 5. Please help me complete or improve the ticker list. Thanks!
Whatever you think you have ingeniously invented, there's a 99.8% chance someone already has thought about it or done it, And/or it doesn't work as heavenly and divinely and Holey Grailey as you are imagining it to, Trading the market is a rather very complicated and dynamic entity, Not something that can be done with basic Yes and No, Up or Down, Buy or Sell indicator Buttons -- as laughable and simplistic as that may sound,
It'll change over time. Instead of picking tickers design the right algorithm to identify risk-on stocks. This is the foundation of how I trade. When it's on like donkey kong you will then know what to buy to put the odds slightly in your favor.
The obvious question would be: how do you measure risk? If you are asking people to contribute to that list they must know your threshold to consider a symbol at risk.
You may have taken him to literal. "risk on" tends to mean market participants are generally in a more speculative mood and we see greater volatility and upside. "risk off" tends to mean less speculating and less volatility.
As a futures trader, I can't help with ticker symbols... when I trade, risk is ALWAYS on! The CNN Fear and Greed index is an often cited gauge of "sentiment", updated as the specific data changes. https://www.cnn.com/markets/fear-and-greed Here is the description from the site... The Fear & Greed Index is a compilation of seven different indicators that measure some aspect of stock market behavior. They are market momentum, stock price strength, stock price breadth, put and call options, junk bond demand, market volatility, and safe haven demand. The index tracks how much these individual indicators deviate from their averages compared to how much they normally diverge. The index gives each indicator equal weighting in calculating a score from 0 to 100, with 100 representing maximum greediness and 0 signaling maximum fear.
@KohPhiPhi, QQQ makes low on 6/16/2022 and close higher. https://finviz.com/quote.ashx?t=QQQ XLI makes low on 7/14/2022 and close higher. https://finviz.com/quote.ashx?t=XLI
add a meme stock to the risk on for S&Gs. you could run a screen for ATR to help with selection. also, VIX is worth consideration in one way or another...
RISK ON: 1. QQQ 2. BTC 3. VWO 4. XLI 5. RISK OFF: 1. TLT - it was risk off a few months ago. now it is neither risk on or risk off. 2. GLD 3. DXYN it was risk off a few months ago. now it is neither risk on or risk off. 4. XLU or XLP (either should work well)