Observations & Notes

Archive for April, 2013

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Fear & Greed Index

Fear & Greed Index

There are only two major emotions that drive the actions of a trader or an investor — Fear and Greed. It is natural that the financial markets may go or down – but how do we know or figure out which of those emotions is driving the US markets? CNN Money came up with a new index of their own using 7 key indicators, that predict the investor sentiment at any given time. As with any other tool, this index too is just a prediction – hence should only be used as another indicator to learn about the current sentiment.

Click on the above image to find the current readings of the Fear & Greed Index at CNN Money website. While at it, check out the page where they explain how the index value is derived.

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