You’ve probably heard the old saying:

“Be fearful when others are greedy, and greedy when others are fearful.”

But how do you know if investors are greedy or fearful?

Here’s one indicator for it…

This is the CNN Fear and Greed Index. It’s a compilation of seven different indicators measuring market sentiment:

This week, the index slid into extreme fear territory. On Wednesday, it got as low as 18.

The last time it hit 18 was on October 12. The stock market bottomed the next day.

Of course, it doesn’t always work as accurately. Sometimes, the index hits extreme fear and stocks keep falling.

But when it gets so low, it usually means the turnaround is near. It’s a time to buy quality stocks, not sell them.

Extreme fear and volatility is also great for traders…

And on Tuesday, in his brand-new letter, RiskHedge Chief Trader Justin Spittler will share his #1 trade idea for the week.

Stay tuned…

SIGNOFF

In case you missed it…

On Monday, Chief Analyst Stephen McBride discussed the collapse of Silicon Valley Bank (SVB)… its chain reaction… and the implications it has for your money.

AI programs like ChatGPT have had an unintended consequence: They’ve made cybercrime better, faster, and cheaper. But they’re also paving the way for this group of stocks to flourish…

On Friday, Stephen claimed SVB’s collapse marks the beginning of the end of Silicon Valley… which will have a “trickle-up” effect on many of today’s largest and most popular stocks.