Markets Driven By Extreme Fear, Not Ancticipation of Quantitative Easing, Says CNNMoney’s Fear & Greed Index
No official announcement of Quantitative Easing but everyone is expecting that Quantitative Easing is the reason for the $1600 handle and the targeting of silver of $29 before it breaks through $30 on its way to the $34-36 range where it, once again, can build a base before a significant 75% price rise. Psychologically, though, what’s driving these markets is extreme fear, and not the reality of quantitative easing. According to the fear and greed index over at CNN Money, investors are showing extreme fear in the face of the following market conditions: Market Volatility, Put and Call Options, Stock Price Strength, Stock Price Breadth, Safe Haven Demand, Junk Bond Demand.
Is this the end of the era of greed as investors no longer work for greed but run from fear? The price propagandists have the monied classes of the world shaking in their pants in the face of unpredictable volatility consistently spurred by news out of Spain and Greece, two euro-peripheral nations now joined by the U.S. in the fear inducing headlines from this morning.