• Fear & Greed Index

    The Signals of Fear & Greed Index

    About a year ago I went looking for the historical data on the Fear-Greed index (FGI) which was created and is being updated daily by CNN. The company ignores requests for their historical data. Looking for it online I saw forums of university researchers (not necessarily traders) who were trying to discover how CNN’s algorithm works just to recreate the index, but with no luck. FGI is calculated daily through a proprietary algorithm, putting together seven different parameters dealing with the options market, stock and bonds return, advancing-declining NYSE volumes, volatility, NYSE NH-NL, junk bonds demand and market momentum. The result is a daily value between 0 (maximum fear) and…