Market Sentiment Score & Risk Environment
The WhaleQuant Market Sentiment Score provides a data-driven view of current market psychology by measuring where sentiment sits within its own historical distribution. Updated daily, the score summarizes multiple sentiment-related inputs into a single 0–100 indicator designed to help assess the prevailing risk environment, rather than generate standalone trading signals.
Latest update: 2025-12-23 – Sentiment score: 60 / 100 ( Mild Risk-On )
What Is the WhaleQuant Market Sentiment Score?
The WhaleQuant Market Sentiment Score provides a contextual view of current market psychology by measuring where sentiment sits within its own historical distribution. It summarizes multiple sentiment-related inputs into a single 0–100 score that reflects the prevailing risk environment, rather than issuing explicit buy or sell signals.
Market Sentiment Score & Risk Environment Analysis
The WhaleQuant Market Sentiment Score provides a contextual view of current market psychology by measuring where sentiment sits within its own historical distribution. As of 2025-12-23, the sentiment score is 60 / 100, indicating a modest risk-on tone .
- Current sentiment score: 60 / 100.
- Historical context indicates: moderately improving risk appetite .
- Practical note: extreme readings (both low and high) often coincide with crowded positioning and are best used as a risk awareness tool, rather than a standalone trading signal.
Bands: Extreme Risk-Off <20 · Defensive 20–35 · Mild Fear 35–45 · Neutral 45–55 · Mild Greed 55–65 · Risk-On 65–80 · Overheated >80
How the WhaleQuant Market Sentiment Score Works (Methodology & Interpretation)
1. What is this score?
The WhaleQuant Market Sentiment Score is a relative, multi-factor indicator designed to measure where current market psychology sits within its own historical distribution. Rather than labeling sentiment in absolute terms, the score provides context for assessing the prevailing risk environment.
The score ranges from 0 to 100, where lower values reflect more defensive, risk-averse conditions, and higher values reflect elevated risk appetite relative to recent history.
2. Data sources and construction
The sentiment score is constructed using a standardized blend of multiple sentiment-related inputs, including:
- Options market positioning: measures of hedging and speculative behavior derived from put/call dynamics.
- Survey-based sentiment: investor confidence indicators such as AAII-style bullish vs bearish responses.
- Composite sentiment gauges: broader market sentiment inputs that capture risk appetite across asset classes.
Each component is normalized relative to its own recent history before aggregation, allowing the score to adapt across different market regimes.
3. How to interpret the score
- Low readings: indicate defensive positioning and elevated risk aversion relative to history.
- Mid-range readings: reflect broadly neutral or balanced sentiment conditions.
- High readings: signal increased risk appetite and more aggressive positioning.
Importantly, the score is designed to describe the sentiment backdrop, not to generate standalone buy or sell signals.
4. Practical usage
The sentiment score is best used in combination with other analytical layers, such as trend structure, volatility conditions, and options-derived market regimes. Extreme readings may coincide with crowded positioning, but their implications depend on broader market context.
5. Important note
This metric is provided for informational purposes only and should not be interpreted as investment advice. Market sentiment is dynamic and should always be evaluated alongside price action and risk management considerations.
FAQ: WhaleQuant Market Sentiment Score
Is this the same as the CNN Fear & Greed Index?
No. The WhaleQuant Market Sentiment Score is an independent, multi-factor indicator with a different construction and interpretation. Unlike traditional Fear & Greed indices, this score measures where current market sentiment sits within its own historical distribution, rather than assigning absolute fear or greed labels.
What does the sentiment score represent?
The score ranges from 0 to 100 and reflects the prevailing risk environment relative to recent history. Lower readings indicate more defensive, risk-averse conditions, while higher readings suggest elevated risk appetite. It is designed to provide context, not explicit trading signals.
What data is used to construct the score?
The sentiment score is derived from a standardized blend of multiple sentiment-related inputs, including options market positioning, survey-based investor sentiment, and broader composite sentiment indicators. Each component is normalized before aggregation to ensure consistency across market regimes.
How often is the sentiment score updated?
The score is typically updated once per trading day, reflecting the most recent available data across its underlying components.
Can this score be used on its own to time the market?
No. Market sentiment should not be used in isolation. The WhaleQuant Sentiment Score is best interpreted alongside trend structure, volatility conditions, and other risk management tools to form a more complete market view.