Current Market Sentiment (Technical Analysis)
Wondering whether it's a good time to invest now?
Fear & Greed
“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful," said Warren Buffett.
The stock market is at an interesting intersection between recent all time highs ahead of interest rate cuts and technical weakness due to market sentiment.
I personally love to go shopping for stocks when the market is fearful - that’s when you will pick your best bargains.
In the crypto market, the picture is a little rosier after the bitcoin ETF approvals, the halving (historically a bullish event) and probable (75% probability) Ethereum ETF approvals.
It’s not greed anymore and we went significantly down from last week’s level, and so did crypto prices. It shows that the overall negative sentiment also impacted the volatile crypto market. It may be a good time to continue accumulating coins.
This Market is a Stock Picker’s Heaven
The current market price levels may suggest that it’s somewhat overpriced for a passive investor, and stock picking may come in handy here.
An indicator I love to look at when deciding whether to buy the whole index (i.e. the index is cheap or “on sale”), is the 100-day moving average (MA) indicator.
Investopedia defines a moving average as “a widely used technical indicator that smooths out price trends by filtering out the noise from random short-term price fluctuations.”
Filtering out the noise is really key when making investment decisions.
And this is the result when applying technical indicators to the current market price action.
