Market Temperature (11/12)

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?

Put and Call Options: Extreme Greed
During the last five trading days, volume in put options has lagged volume in call options by 61.59% 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.

Stock Price Breadth: Greed
The McClellan Volume Summation Index measures advancing and declining volume on the NYSE. During the last month, approximately 6.18% more of each day's volume has traded in advancing issues than in declining issues, pushing this indicator towards the upper end of its range for the last two years.

Last changed Oct 22 from a Neutral rating.

Stock Price Strength: Greed
The number of stocks hitting 52-week highs exceeds the number hitting lows and is at the upper end of its range, indicating greed.

Last changed Nov 5 from a Neutral rating.