Market Temperature (11/04)

The fear and greed index was developed by CNNMoney to measure two of the primary emotions that influence how much investors are willing to pay for stocks.

The fear and greed index is measured on a daily, weekly, monthly, and yearly basis. In theory, the index can be used to gauge whether the stock market is fairly priced. This is based on the logic that excessive fear tends to drive down share prices, and too much greed tends to have the opposite effect.

Fear & Greed Index
What emotion is driving the market?

Market Volatility: Neutral

The CBOE Volatility Index (VIX) is at 15.10. This is a neutral reading and indicates that market risks appear low.

Last changed Oct 4 from an Extreme Fear rating.

Stock Price Strength: Fear

The number of stocks hitting 52-week highs exceeds the number hitting lows but is at the lower end of its range, indicating fear.

Last changed Oct 27 from an Extreme Fear rating.

Put and Call Options: Extreme Greed

During the last five trading days, volume in put options has lagged volume in call options by 64.12% as investors make bullish bets in their portfolios. This is among the lowest levels of put buying seen during the last two years, indicating extreme greed on the part of investors.

Last changed Oct 27 from a Greed rating.