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FEAR/GREED SENTIMENT INDEX – APRIL 14, 2018

April 14th, 2018 Comments off

The “Fear/Greed Sentiment Index: What Emotion is Driving the Market Now?” has a current reading of 23 which is in the “Extreme Fear” zone. This suggests that the market is in a buying range and not a selling range. Tactically, this means that you should either buy or hold depending on your situation.

This indicator has remained in the “Extreme Fear” area for an abnormally long time. I would guess that it will leave this “oversold” area shortly and not return for some time. (After perhaps, one more spike down)

I would look to buy on any 2 to 3 day weakness that is accompanied by “obvious bad news” as the cover story for a good bottom in the market. I think that the next retest of the recent bottoms will be successful and that a sharp rally should follow. The only trick will be if the weakness occurs on a Friday where traders will have to sweat out the weekend of potentially more bad news.

FEAR/GREED SENTIMENT INDEX – MARCH 18, 2018

March 18th, 2018 Comments off

The “Fear/Greed Sentiment Index: What Emotion is Driving the Market Now?” reading has a current reading of 19 which is in the “Extreme Fear” zone. This suggests that the market is in a buying range and not a selling range. Tactically, this means that you should either buy or hold depending on your situation.

This indicator ventured out into the “Fear” area about a week ago, but has returned back into the “Extreme Greed” zone once again. My guess is that this indicator will not stay in the “Extreme Greed” area very long since it has already spent an abnormally long period of time in it last month.

I would look to buy weakness especially if we should receive oversold readings in breadth indicators, moves toward major indexes 200-day moving averages or retests of previous correction lows. While it is hard to say how much higher the general market can go up from here, the important thing to keep in mind is that this market has been correcting for a long enough time to support a healthy multi-month rally.

FEAR/GREED SENTIMENT INDEX – MARCH 2, 2018

March 1st, 2018 Comments off

The “Fear/Greed Sentiment Index: What Emotion is Driving the Market Now?” reading has a current reading of 8 which is well into the “Extreme Fear” zone. This suggests that the market is in a buying range and not a selling range. Tactically, this means that you should either buy or hold depending on your situation.

This indicator has remained in the “Extreme Fear” area for several weeks now. This is very abnormal and suggests that we have corrected long enough in terms of time. But the charts of the major indexes don’t appear to have declined enough in terms of price.

Today’s “Extreme Fear” reading means that it’s time to start taking pilot positions if you’re under-invested in preparation for a rally to challenge the old highs. A bottom may likely appear on either Friday or Monday but actually picking that bottom will be hard to do as always. You will have sweaty palms from the fear of taking a risk here, but it’s about time for the market to get out of the “Extreme Fear” zone. It’s been here too long.

Note: This reading of 8 is the lowest of this current down cycle and may mark the bottom of this correction.

FEAR/GREED SENTIMENT INDEX – JANUARY 20, 2018

January 20th, 2018 Comments off

The “Fear/Greed Sentiment Index: What Emotion is Driving the Market Now?” reading has a current reading of 80 which is in the “Extreme Greed” zone. This suggests that the market is in a selling range and not a buying range. Tactically, this means that you should either sell or hold depending on your situation.

This indicator has remained in the “Extreme Greed” area for most of last week. However, this gauge was in the “neutral” zone not too long ago. But we never got into the “Fear” range with a chance to reload for this ride to the upside.

Today’s “Extreme Greed” reading means that it’s time to be on the sidelines waiting for the sentiment to become more negative and present another buying opportunity. That’s going to take a few weeks at a minimum.

FEAR/GREED SENTIMENT INDEX – DECEMBER 31, 2017

December 31st, 2017 Comments off

The “Fear/Greed Sentiment Index: What Emotion is Driving the Market Now?” reading has a current reading of 53 which is in the “Neutral” zone. This allows the market to go in either direction so it is neither a selling or a buying area.

This indicator has remained in the “Greed” area for most of December which is surprising when you consider the duration and extent of this rally. While recent buying opportunities have come when this indicator gets a reading of 25 or lower, the market may continue to rally without any resistance.

Today’s “Neutral” reading is a small move in the direction towards “Extreme Fear” and may be suggesting that an oversold/pessimistic bottom is coming in the first week or two of 2018. That would present a chance to get back onboard the market for another ride up to new highs.

FEAR/GREED SENTIMENT INDEX – NOVEMBER 18, 2017

November 18th, 2017 Comments off


The “Fear/Greed Sentiment Index: What Emotion is Driving the Market Now?” reading has a current reading of 44 which is in the “Fear” zone. This allows the market to go in either direction so it is neither a selling or a buying area.

But this indicator continues to move across its range from “Extreme Greed” readings around 90 just a few weeks ago. Recent buying opportunities have come when this indicator gets a reading of 25 or lower.

Today’s “Fear” reading is the first one in a long time and may be suggesting that an oversold/pessimistic bottom is coming in the next few weeks. That would present a chance to get back onboard the market for another ride up to new highs.

FEAR/GREED SENTIMENT INDEX – NOVEMBER 5, 2017

November 5th, 2017 Comments off


The “Fear/Greed Sentiment Index: What Emotion is Driving the Market Now?” reading has a current reading of 66 which is in the “Greed” zone. This allows the market to go in either direction so it is neither a selling or a buying area.

One might think that the market’s continuing rally has to stop and correct at the very least. But it appears that there are still major portions of the general market that have stayed modest in their appreciation and present opportunities for price advances.

But since this indicator was in the “Extreme Greed” area for a long time, it may be working its way toward the “Extreme Fear” area and a buying opportunity a few weeks away from now.

FEAR/GREED SENTIMENT INDEX – OCTOBER 3, 2017

October 2nd, 2017 Comments off


The “Fear/Greed Sentiment Index: What Emotion is Driving the Market Now?” reading has been in the “Extreme Greed” zone for several days now. It has even gone to the far extreme by posting a reading of 90 which probably marks an “internal top” or point of maximum upside momentum.

While this isn’t the only indicator of the market’s condition, it has represented a reliable gauge of market sentiment in the past. When the market is “over-loved” like it is now, it matches both the present overbought (in terms of price action) and overvalued (fundamental) condition.

Together, these 3 gauges confirm that this is highly likely the area of an important top and certainly not a time to become more bullish and hold large bets for more upside appreciation. That doesn’t mean that they market can’t go any higher in terms of price, but it does suggest that it won’t be going up for very much longer. If there is a time to move to the sidelines, this would be one of those.

FEAR/GREED SENTIMENT INDEX – SEPTEMBER 16, 2017

September 16th, 2017 Comments off


The “Fear/Greed Sentiment Index: What Emotion is Driving the Market Now?” reading is once again back in the “Extreme Greed” range after being in the “Extreme Fear” zone only a few weeks ago. At the beginning of this week, most of the internal indicators were showing “overbought” conditions. Plus, the market indices are pushing against resistance levels at the top of the price ranges.

All of these point to a time when it’s too late to buy and most likely a good time to sell or lighten up. And while this Fear/Greed Index is showing “Extreme Greed,” it can still move closer to the 90-95 range before exhausting itself to the upside.

Now is a time to start building up cash for the next buying opportunity when this indicator is back in the “Extreme Greed” area. That time is several weeks away.

FEAR/GREED SENTIMENT INDEX – AUGUST 19, 2017

August 19th, 2017 Comments off


The “Fear/Greed Sentiment Index: What Emotion is Driving the Market Now?” reading is finally in the “Extreme Fear” range for the second day in a row at 17. This indicator is now suggesting that the general stock market is in a “buying opportunity” zone.

This is a minimum requirement for taking new positions in the general stock market. In the past, it is not unusual for market bottoms to occur when this index is under 10. But overall, the market is close to a bottom and it wouldn’t be such a bad idea to start taking positions on any further weakness even though your “palms are sweaty.”

But in times and opportunities like this, money management strategies are the key to success. In my book, Wall Street Craps: How to Play Today’s Hot & Cold Markets for Fast Money With Less Risk, I write about dividing your investing capital into “chips” or even blocks of money.

For example, if you have $100, divide this amount into 20 $5 chips. Your first bet might be $5 or $10 or 5% or 10% of your investing capital. So the present situation would be one where you make a first bet. This means that the present buying opportunity should only be 5%-10% of your investing or trading capital. This is because you may be a little early at this time and in steep market drops being early can be costly and dangerous.