• 478 days Will The ECB Continue To Hike Rates?
  • 479 days Forbes: Aramco Remains Largest Company In The Middle East
  • 480 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 880 days Could Crypto Overtake Traditional Investment?
  • 885 days Americans Still Quitting Jobs At Record Pace
  • 887 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 890 days Is The Dollar Too Strong?
  • 890 days Big Tech Disappoints Investors on Earnings Calls
  • 891 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 893 days China Is Quietly Trying To Distance Itself From Russia
  • 893 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 897 days Crypto Investors Won Big In 2021
  • 897 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 898 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 900 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 901 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 904 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 905 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 905 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 907 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

Charts and Commentary

I had a subscriber call about the Fear Index yesterday and we had a good discussion about the impact of fear levels on another dimension ... so I will share it with you. The analogy I shared with him was one about being a parent relative to fear and "trust" levels.

Imagine you have a 15 year old son. He has been terrific and trustworthy for years. All of the sudden a significant change of behavior occurs. He waits until you are asleep and then sneaks out of the house at midnight and stays out until 4 AM. You catch him and are very upset and fear that something bad could have happened to him while being out in those late hours.

Then ... it happens again 4 days later. This time you have the same fear... but, an important thing occurred this time. You lost your TRUST in him because of his behavior. Losing trust is a significant event because now you "doubt" his good behavior tendency ... and now, he won't regain your trust until her earns it back, and that could take some time to do. The same thing happens to investors. They can go from a point of fear, to a point where they lose trust in the market and need "time" and "evidence" for that trust to be earned back. Until that trust is reestablished, the investor will do very little buying ... and if his fear remains high, he may continue to sell on any advance.

That explains why our Fear Index can be so important.

Today's Fear Index is below, and it is showing that investors are remaining very fearful. Each time that they got a little bit more brave, their trust was lessened afterwards because the fast green indicator line is showing this by making lower tops.

While yesterday was an up day with buying by some of the big money players, the average investor remained scared ... with difficulty "trusting" the market enough to resume buying like they did months ago.

Please Note: We do not issue Buy or Sell timing recommendations on these Free daily update pages. I hope you understand that in fairness, our Buy/Sell recommendations and advanced market Models are only available to our paid subscribers on a password required basis. Membership information.

 

Back to homepage

Leave a comment

Leave a comment