greedindex

Quote of the Week: Indexing Fear and Greed

by

July 16, 2012

“In the first quarter of 2012, stocks staged their best run in decades, and the index showed pure greed.”

 

Who said it: CNNMoney’s Fear & Greed index analyst

 

In Context: The statement above is from a recent report on the Fear and Greed Index, which was launched back in May by CNNMoney. It is a new tool tracking how emotion is driving the stock market on a daily basis. Currently the index is in Neutral (as the graphic above shows), halfway between fear and greed style investing. The index uses seven indicators, for example stock price momentum, stock price strength (number of stocks hitting 52-week highs and lows on the New York Stock Exchange), volume of shares trading in stocks on the rise versus those declining, put/call ratios and several others. (Image source: Modelo Group website)

 

Where we found it: CNNMoney’s Fear and Greed Index

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