What is the contrarian Fear & Greed signal?

The CNN Fear & Greed Index scores market emotion 0–100. The contrarian read flips it: extreme fear (a low reading) leans bullish and extreme greed (a high reading) leans bearish, on the logic that markets bottom when sellers are exhausted and top when buyers are all-in.

How the fear and greed sides are treated differently

Quantustik does not treat the two extremes symmetrically. On the fear side the score is persistence-weighted: fear sustained over several days counts more than a single-day spike, because durable fear is a stronger contrarian buy hint. On the greed side there is no persistence amplification — a multi-year review found persistent greed more often resolves upward than into a reversal, so the sell-lean stays capped. In plain terms: sustained panic is a meaningful buy hint; sustained euphoria gets only mild caution.

Why contrarian signals are hints, not triggers

Markets can stay fearful or greedy far longer than seems reasonable, and "extreme" fear can always get more extreme before it turns. That is why Quantustik reads contrarian Fear & Greed as one input among many in its composite Market Conditions score, never as a standalone buy or sell trigger.

Frequently asked questions

Why score opposite to the Fear & Greed Index?

Markets tend to bottom when almost everyone is fearful and sellers are exhausted, and top when almost everyone is greedy. The contrarian read leans bullish on extreme fear and bearish on extreme greed.

Why is fear weighted more heavily than greed?

Sustained fear is a stronger contrarian buy hint, so fear is persistence-weighted. Persistent greed more often resolves upward than into a reversal, so the sell-lean stays capped rather than amplified.

Can I use it to time entries?

Not on its own — contrarian sentiment has poor timing precision. Quantustik uses it as one input to a broader Market Conditions score, not a standalone trigger.

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Educational research only — not investment advice.