Below is a snapshot of the Fear and Greed index from today 8/21/2017.
If you know my work, you have heard me say "when people become fearful in the market, you know it's time to buy stocks," In fact that statement is posted directly on my website TradersChoice.net (About TradersChoice Page) Click here: https://www.traderschoice.net/about-traderschoice.html
Although the fear and greed index is showing extreme fear at this time, I would not be rushing into new long positions today.
If you are long this market, I would seriously consider putting hedges on those positions.
At this time cash continues to make its way into the perceived safety of debt, with the 10 year yield now at 2.194.
Although as I have said, when there is fear in the market it generally means it's time to buy stocks, I want to see some cash making its way out of the bond market-and that 10 year yield moving higher before I would be adding two new long positions or covering my hedges on current Longs.
In my opinion there is further down side coming for this market in the short term however, keep your eye on the fear and greed index along with the 10 year yield looking for further evidence of a rebound.
