Daily Market Report · Methodology

How to Read Your Market Sentiment Score

Every VilfinTV Daily Market Report email leads with a single number from -100 to +100 and a one-line "phase" label. Here's exactly what feeds into it, a live example from today's real report, and a practical framework for how to deploy money at each level.

● Real market data, fetched fresh every run ● Sent every trading day, before 9:00am JST ● Free to subscribe
01 · The Scale

The Score Scale

The score starts at zero and moves up or down as each signal below is checked, then it's capped to a -100…+100 range. The final number lands in one of five bands:

< -50Extremely Bearish
-50 to -11Bearish Contraction
-10 to 9Neutral / Mixed
10 to 49Bullish Leaning
≥ 50Bullish Expansion
ScorePhaseWhat it means
≥ 50Bullish ExpansionMost tracked signals (volatility, momentum, risk appetite) are pointing the same confident direction: up.
10 to 49Bullish Leaning / NeutralMore good signals than bad, but not an overwhelming consensus yet.
-10 to 9Neutral / MixedSignals are roughly balanced — no real directional edge either way.
-50 to -11Bearish ContractionMore warning signs than good ones — caution flags outnumber the reassuring signals.
< -50Extremely Bearish / Risk-OffMultiple serious stress signals firing together (e.g. an inverted yield curve plus high volatility plus falling equities).
02 · Live Example

Today's Real Report, Broken Down

Not a mock-up — this updates automatically every morning right after the Daily Market Report email is sent, pulled from that same run's real scoring data, so you can see precisely how today's number was built, signal by signal.

55
Market Sentiment Score
Bullish Expansion
Example from July 15, 2026
Real data, real scoring code
SignalToday's real readingPoints
VIX (Fear Index)16.50, below its 20-day average (17.01) — in the 16–20 calm zone+10
Yield Curve — 30Y vs 10Y30Y 5.09% − 10Y 4.59% = +0.50% spread (moderate, not steep)+10
Yield Curve — 10Y vs 3-Month10Y 4.59% − 3-month 3.70% = +0.89% (not inverted)+0
Credit StressHYG +0.20%, IEF +0.28% same day — no stress pattern+0
Equity MomentumS&P 500 above both MAs (+10), Nikkei above 50-day only (+5), Nifty 50 above both MAs (+10)+25
Risk AppetiteCopper +2.32% & S&P +0.38% risk-on, but Gold also rose +1.72% (2 of 3 signals agreed)+10
Risk Alerts
No risk alerts fired today — no extreme VIX, no yield curve inversion, no credit stress spike.
🌍 Best Region to Buy:

US Equities. 6 out of 6 tracked US indices are in a confirmed uptrend, led by Dow Jones (+2.90% above its moving average). US markets show strong relative strength with an average premium of 1.33% over their 50-day trendlines.

🚀 Top Growth Sector:

Semiconductor — trading +1.10% above its 50-day average with an explosive +60.81% year-to-date return. Capital is heavily rotating here for short-term alpha.

10 + 10 + 0 + 0 + 25 + 10 = 55 → Bullish Expansion (≥ 50) Example only — live data not loaded (viewing this file locally or offline)
03 · The Signals

The 6 Signals Behind the Number

The score is a sum of independent checks against real market data fetched fresh every run. Nothing here is a prediction — it's a same-day snapshot of how several classic macro/market indicators line up.

😨
VIX (Fear Index)
±20 points
The VIX tracks how much volatility options traders expect in the S&P 500 over the next 30 days. Low and falling VIX = calm markets; a rising, elevated VIX = fear.
VIX < 16 and below its 20-day average+20
VIX 16–20 and below its 20-day average+10
VIX > 20-20
VIX > 25 also triggers a standalone "High Volatility" alertflag only
📈
Yield Curve — 30Y vs 10Y
±20 points
Compares US 30-year and 10-year Treasury yields. Normally longer-dated bonds yield more; when that flips (inverts), it's historically one of the more reliable recession warnings.
Inverted (30Y yield below 10Y)-20
Spread > 0.8% (steep, healthy curve)+20
Spread 0.3%–0.8%+10
Spread ≤ 0.3% (flat)+0
🚨
Yield Curve — 10Y vs 3-Month
-30 only
A second, shorter-horizon version of the same idea, watched closely by the Federal Reserve itself. When the 3-month yield rises above the 10-year, it has preceded most recent US recessions.
Inverted (3-month yield above 10-year)-30
Not invertedno change
🧊
Credit Stress
-20 only
Compares junk bonds (HYG) against safe US Treasuries (IEF) on the day. When investors dump risky corporate debt and rush into safety at the same time, it's an early sign of tightening liquidity.
HYG falls >1% and IEF rises >0.5% same day-20
Otherwiseno change
🌍
Equity Momentum
±30 points
Checks the S&P 500, Nikkei 225, and Nifty 50 against their own 20-day and 50-day moving averages — a classic trend-following read on three major regions at once (up to 10 points each).
Price above both 20-day & 50-day average+10 each
Price above 50-day average only+5 each
Price below 50-day average-10 each
⚖️
Risk Appetite
+30 / -30
Checks whether Gold (falling), Copper (rising), and the S&P 500 (rising) all agree on the same "risk-on" story — gold is the classic safe-haven, copper tracks industrial optimism.
All available signals agree (risk-on)+30
All but one agree+10
Mixed / majority disagree-30
💱 Currency Volatility is also tracked (any major pair moving >1.5% in a day gets flagged in the report), but it's an informational alert only — it does not change the score itself.
04 · The Playbook

How to Actually Act on It: SIP vs. Lump Sum

A practical deployment framework for each band. This is a general heuristic tied to the score, not personalized advice — see the disclaimer below.

ScorePhaseSuggested approach
≥ 50Bullish ExpansionHistorically, lump sum tends to beat SIP in a confirmed rising market (more of your money is invested sooner, catching the upward drift). A score just over 50 is a lean, not a strong conviction signal — consider deploying the majority as lump sum while keeping a portion on a short SIP (2–3 months) as a hedge.
10 to 49Bullish LeaningSIP remains the default, but a shorter SIP horizon (e.g. 3 months instead of 12) can make sense given the building momentum.
-10 to 9Neutral / MixedClassic SIP territory — no directional edge either way, so staged investing minimizes the risk of a badly-timed entry.
-50 to -11Bearish ContractionStick with SIP; consider tilting toward buying more on down days specifically — VilfinTV's own NIFTY 50 backtest found a dip-buying approach meaningfully reduced losses versus a fixed schedule during a falling market.
< -50Extremely BearishEmotionally the hardest, but often historically a strong long-term entry window for investors with real conviction and a long horizon. Staying largely in cash ("Hold") is also a completely reasonable choice, especially for money needed within a few years.
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