Wall Street Craps – 2012 Global Ebook Finance Award-Winner

Last week’s stock market strategy report said that the general market was surprisingly “oversold” and ready for an extension of the post-election rally. We certainly got that rally and more with the “Fear/Greed Sentiment Index” pushing into the “Extreme Greed” range for all 5 days. I would still expect a few days with readings over 90 before this rally has exhausted itself. But this is still no place to be going long and only the pros should consider heavy betting on the downside. If you’re inclined to trade, this may be a time to step aside and let the market zig-zag higher with non-confirmations or zig-zag lower into another short-term oversold condition. Either of these scenarios appears to be more than a week away. So stay on the sidelines and let the market set itself up for the next trading opportunity.

This indicator is labeled as being in the “Greed” zone right now.  Ideal buying opportunities have only occurred when the general market has been in the “Extreme Fear” zone. Conversely, optimal selling opportunities tend to occur when the general market has been in the “Extreme Greed” zone. This suggests that the market needs a little more time in order to generate greater greed in order to sell. So don’t be surprised if the market continues to zig-zag its way to higher highs. With the strength of this move, the market can stay in the “Extreme Greed” area for over  a week as well.

This indicator is labeled as being in the “Fear” zone right now.  Ideal buying opportunities have only occurred when the general market has been in the “Extreme Fear” zone. This suggests that the market needs a little more time in order to generate greater fear. This will help set for a better intermediate-term buying opportunity. That could happen as early as next week. (Source: http://money.cnn.com/data/fear-and-greed)

This indicator is labeled as being in the “Neutral” zone right now.  Ideal buying opportunities have only occurred when the general market has been in the “Extreme Fear” zone. This suggests that the market needs more time and greater fear in order to set itself up for a better intermediate-term buying opportunity. (Source: http://money.cnn.com/data/fear-and-greed)

While this indicator is labeled as being in the “Fear” zone, the ideal buying opportunities have occurred when the general market has been in the “Extreme Fear” zone. This suggests that the market needs more time and greater fear in order to set itself up for a better intermediate-term buying opportunity. (Source: http://money.cnn.com/data/fear-and-greed)

http://money.cnn.com/data/fear-and-greed

http://money.cnn.com/data/fear-and-greed