HOW THE CORONAVIRUS SCARE HAS DRIVEN DANGEROUS ARROGANCE AND GREED IN THE STOCK MARKET $AAPL $AMD $DIA $DJIA $GLD $QQQ $SLV $SPY $SQQQ
It is no secret that the stock market is driven by greed and fear. Normally I measure levels of greed and fear in the market using proven algorithms. At extremes, greed is a sell signal and fear is a buy signal for stocks.
The reaction to the coronavirus shows that there is an unprecedented amount of arrogance among the momo (momentum) crowd and the people who influence them. The stock market these days is controlled by the momo crowd. This combination of greed and arrogance may prove to be dangerous for investors. Let’s examine the danger with the help of two charts.… Please click here or the title below to read more.
January 30, 2020