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.
Categories: Fear & Greed Index Tags: AAPL, AMZN, bonds, EFT, equities, invest, investing, investments, mutual funds, retirement, stock market, stocks, tony robbins, trading, wealth mastery
STOCK MARKET STRATEGY FOR MARCH 10, 2018: The stock market is currently “overbought” in most of the internal indicators. Therefore, the market can hit a short-term top at any time. This has been a very tricky market to trade precisely, since the swings have been so punishing over the short-term when being too early with large bets. The market still has room to rally to the upside. As far as taking new long positions, the time for that was either last week or early February. Now is a time to watch and wait for the next “oversold” set-up.
Key underlying short-term timing indicators show the following:
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THE BOTTOM LINE: The Fear/Greed Index is currently reading 44 or “Fear.” This is the first move out of the “Extreme Fear” area in several weeks. As far as sentiment goes, we had our chance over the past month to take long positions on weakness. The thing to do now, is wait for a short-term oversold condition in two the McClellan Oscillators (the most reliable short-term indicators) in order to take new positions for another trip into new high territory.
Categories: Stock Market Strategy Tags: AAPL, AMZN, bonds, EFT, equities, invest, investing, investments, mutual funds, retirement, stock market, stocks, tony robbins, trading, wealth mastery