Extreme Fear
Risk-off mood. Historically useful for staggered accumulation when fundamentals remain intact.
Fear
Defensive positioning dominates. Prefer quality and avoid over-leveraged high beta trades.
Neutral
Positioning is balanced. Let trend and earnings quality drive allocation decisions.
Greed
Risk appetite improving. Participate, but avoid late-cycle overbought chasing.
Extreme Greed
Crowded optimism. Tighten risk controls, trim euphoric names, and protect gains.